On Friday, Moody’s upgraded Ghana’s long-term local and foreign currency issuer ratings from “Caa3” and “Ca” to “Caa2,” crediting the extensive debt restructuring that has significantly reduced the government’s financial pressure.
The credit ratings agency also shifted the country’s outlook from “stable” to “positive.”
Moody’s emphasised that the “positive” outlook indicates the potential for reduced liquidity risks as Ghana continues its fiscal reforms, bolstered by an IMF program.
Ghana’s economy grew by 6.9% in the second quarter of 2024—the fastest rate in five years—according to the country’s statistics agency.
Moody’s projects that while Ghana’s debt will continue to decline, the process will be gradual as the government resumes making payments on its obligations.