Agency cites lower borrowing costs, improved debt affordability and sustained fiscal discipline, but warns that significant credit risks remain. International credit rating agency Moody’s Ratings has upgraded Ghana’s long-term foreign and local currency issuer ratings to B3 from Caa1, citing improved domestic financing conditions, lower borrowing costs and progress in easing pressure on government finances.
The rating action, announced on Friday, October 9, 2026, represents a further improvement in Ghana’s credit assessment following efforts to restore macroeconomic stability and rebuild investor confidence after the country’s debt crisis.
However, Moody’s revised Ghana’s credit outlook from positive to stable, indicating that although the country’s credit conditions have improved, the agency expects the gains to be sustained rather than signaling an immediate further upgrade.
In its latest assessment, Moody’s attributed the upgrade to a sustained easing of domestic financing conditions, which has reduced government financing costs and improved debt affordability, although the latter remains weak.
The agency noted that borrowing costs had remained relatively low despite external pressures, including the conflict in the Middle East. It attributed this resilience to continued fiscal discipline, institutional improvements and favourable export prices supporting macroeconomic stability.
The revision of Ghana’s outlook to stable reflects Moody’s expectation that the country will sustain its improved macroeconomic stability and reduced government liquidity risks, supported partly by favourable export dynamics.
The agency has also identified the potential benefits of a stronger record of fiscal discipline and continued efforts to build external buffers, which could improve Ghana’s capacity to withstand future external economic shocks.
The upgrade is expected to support investor perceptions of Ghana’s creditworthiness. However, its effect on borrowing costs and access to international capital markets will depend on broader market conditions, investors’ risk appetite and the country’s continued economic performance.
Ghana remains below investment grade
Despite the improvement, Ghana remains within the speculative-grade category under Moody’s rating scale.
A B3 rating indicates that significant credit risks persist, meaning investors remain exposed to considerable uncertainty regarding the country’s ability to withstand economic and financial shocks.
The upgrade therefore does not mean Ghana has fully resolved its public debt challenges or regained investment-grade status. Sustained improvements in revenue mobilisation, expenditure management, debt servicing capacity and external reserves will remain important to strengthening its credit profile.
The country’s exposure to exchange-rate movements, commodity-price volatility and external financing pressures also remains relevant to its longer-term economic outlook.
Sustaining the recovery
The latest rating action comes as Ghana continues efforts to recover from the economic and debt difficulties that culminated in a debt restructuring exercise and financial support from the International Monetary Fund.
The improved assessment points to progress in reducing financing pressures, but maintaining that progress will require consistent fiscal management and policies that strengthen the resilience of public finances.
For policymakers, the challenge will be to translate lower borrowing costs and improved debt affordability into lasting economic gains, while strengthening domestic revenue generation and reducing vulnerability to external shocks.
The stable outlook places emphasis on consolidating the progress achieved so far. Whether Ghana can secure further rating improvements will depend on its ability to sustain macroeconomic stability, manage public debt prudently and demonstrate a durable improvement in its capacity to meet financial obligations.
Source: Graphic Online; MyJoyOnline.
