{"id":252045,"date":"2025-11-08T23:00:09","date_gmt":"2025-11-08T23:00:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/252045\/"},"modified":"2025-11-08T23:00:09","modified_gmt":"2025-11-08T23:00:09","slug":"why-sp-upgraded-ghanas-credit-rating-to-b-b","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/252045\/","title":{"rendered":"Why S&P upgraded Ghana\u2019s credit rating to \u2018B-\/B\u2019"},"content":{"rendered":"

\"The <\/a>The agency noted that rising gold and cocoa export volumes have boosted the cedi\u2019s stability<\/p>\n

S&P Global Ratings has upgraded Ghana\u2019s long- and short-term sovereign credit ratings from \u2018CCC+\/C\u2019 to \u2018B-\/B\u2019 with a stable outlook, citing improved fiscal discipline, stronger exports, and a recovery in foreign reserves. <\/p>\n

In a report released on November 7, 2025, the agency noted that rising gold and cocoa export volumes have boosted the cedi\u2019s stability and increased foreign reserves to nearly $11 billion, up from $6.8 billion in 2024. <\/p>\n

According to S&P, the upgrade reflects a combination of strengthening fiscal and external metrics for Ghana.<\/p>\n

\u201cThe stable outlook balances the potential for stronger balance-of-payments performance and improvements in Ghana’s fiscal outcomes as a result of ongoing expenditure reforms against still-high debt-service costs, reform implementation risks, and Ghana’s sensitivity to terms of trade, such as gold and cocoa prices, which have been unusually favorable over the last year,\u201d it stated.<\/p>\n

Inflation is projected to remain below 10% by 2026 as the government enforces new fiscal rules, including a mandated 1.5% primary surplus and a debt ceiling targeting 45% of GDP by 2034. <\/p>\n

However, despite the positive signals, S&P maintained a cautious tone with the stable outlook, citing several persistent vulnerabilities.<\/p>\n

The body warned that risks remain from high debt-service costs, reform implementation challenges, and exposure to commodity price shocks. <\/p>\n

\u201cWe could lower the rating on Ghana over the next 12-18 months if fiscal reform momentum stalled with Ghana recording wider budgetary deficits, underpinning a rise in public debt service costs, or straining the government’s ability to refinance maturing debt as it comes due,\u201d it added.<\/p>\n

The upgrade follows Ghana\u2019s successful restructuring of $13.1 billion in Eurobonds and continued progress in addressing its remaining debt obligations.<\/p>\n

What This Means for Ghana<\/p>\n

The upgrade signals a renewed vote of confidence from global capital markets in Ghana\u2019s macroeconomic recovery path. <\/p>\n

According to the S&P, this means improved sovereign ratings may lower borrowing costs for the government and pave the way for better access to international capital markets.<\/p>\n

Additionally, a more stable macro-environment (lower inflation, a stronger currency, rising reserves) improves predictability for business planning and investment.<\/p>\n

\u201cWe could raise the rating in the next 12-18 months if Ghana consistently sustained fiscal deficits at lower levels, reducing debt service costs and strengthening its access to foreign financing while its external position continued to strengthen–including the accumulation of additional foreign currency reserves, for example,\u201d it said.<\/p>\n

The body further lauded the government, which took power in January 2025, for instituting new fiscal rules along with enhancements to public financial management. <\/p>\n

\u201cWe also note that Ghana’s new government, which came to power in December 2024, is enacting policies to safeguard against fiscal slippages, which were frequent. <\/p>\n

\u201cThis includes a mandated 1.5% of GDP primary surplus on an annual basis, for debt to be brought to 45% of GDP by 2034, as well as a proactive framework for correcting future fiscal deviations,\u201d it noted.<\/p>\n

Projections<\/p>\n

According to S&P, Inflation is expected to remain below 10% in 2026 as monetary policy and the exchange rate have stabilised. <\/p>\n

\u201cWe forecast Ghana’s inflation will remain under 10% from over 20% at the start of 2025, while the cedi has appreciated by about 30% compared with the U.S. dollar so far this year,\u201d it concluded.<\/p>\n

ID\/AE<\/p>\n

Watch the promo to GhanaWeb’s latest documentary, which uncovers the evolution of \u2018kayamata,’ an exploitative practice fueled by love charms and manipulation, titled, \u201cThe Dark Side of Kayamata,’ below: <\/p><\/p>\n","protected":false},"excerpt":{"rendered":"The agency noted that rising gold and cocoa export volumes have boosted the cedi\u2019s stability S&P Global Ratings…\n","protected":false},"author":2,"featured_media":33846,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-252045","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/252045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=252045"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/252045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/33846"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=252045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=252045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=252045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}