Ghana’s Foreign Currency Credit Rating Upgraded from ‘SD’ to ‘CCC+’ by S&P Global

S&P Global Ratings has upgraded Ghana’s foreign currency issuer credit rating from ‘SD’ (Selective Default) to ‘CCC+’, citing significant progress in the country’s debt restructuring efforts and an improved economic outlook.

The rating agency highlighted Ghana’s successful domestic debt exchange and ongoing talks with external creditors as key milestones driving the upgrade. “We affirmed our ‘CCC+’ issue ratings on Ghana’s debt, as well as the ‘CCC+/C’ long- and short-term local currency ratings,” S&P noted in its May 9, 2025, assessment. The outlook on both ratings remains stable, and the country’s transferability and convertibility assessment holds at ‘CCC+’.

The revised rating reflects strengthening external indicators, especially a sharp increase in gold export earnings and a gradual rebuilding of foreign reserves. These developments signal improved external liquidity and a greater ability to meet short-term external debt commitments. Additionally, the nearing completion of commercial debt restructuring, including the Eurobond exchange finalized in October 2024, has bolstered Ghana’s credit profile.

This positive revision marks a major step forward for the country after completing both domestic and external debt restructurings, including the signing of a memorandum of understanding with bilateral creditors on January 29, 2025.

Warning on Potential Risks

Despite the improved rating, S&P cautioned that the outlook could turn negative within 12 to 18 months if Ghana’s fiscal situation worsens or borrowing conditions tighten. Such setbacks could raise debt servicing costs and hinder the government’s ability to refinance maturing obligations, risking fiscal and external imbalances.

However, the rating agency expressed confidence that any disruptions from potential holdout creditors are limited, citing protections like the G20 Common Framework’s comparability of treatment and most-favored creditor clauses in restructured bonds.

Government’s Economic Commitment

On the domestic front, the government continues to implement fiscal reforms aimed at stabilizing the economy. Inflation, although still high at 21.2%, has declined to its lowest in eight months, aided by a stronger cedi that has helped reduce import-related price pressures. The local currency, which surpassed GH¢17 to the dollar in 2023, now trades closer to GH¢14, indicating renewed stability.

Finance Minister Dr. Cassiel Ato Forson emphasized that these improvements are not fleeting, crediting sound fiscal management and well-coordinated economic strategies for the sustained progress.