Fitch Upgrade Reflects Lower Default Risk, Not Economic Reform – Khalid

Sharif Mahmud Khalid, Economic Policy Advisor to the Vice President, has clarified that Ghana’s recent credit rating upgrade by Fitch to B- should be seen as a signal of reduced risk to external creditors—not a sign of comprehensive domestic economic reform.

In an interview on Joy FM, Dr. Khalid explained that the rating upgrade, which followed Ghana’s move from ‘Restricted Default’ status, primarily reflects progress in debt restructuring and the government’s commitment to honouring its obligations.

“In the language of rating agencies, the current B- rating from Fitch simply means you’ve improved in terms of your risk of defaulting on a debt payment,” he said.

He pointed to the reactivation of Ghana’s sinking fund—used for servicing debt—as a confidence-boosting measure aimed at foreign markets. “If you’ve activated a sinking fund and committed to both external and domestic debt programs, it invariably sends a positive signal.”

However, Dr. Khalid was quick to temper expectations, noting that the improved rating is not grounded in internal fiscal discipline or structural reforms. “This is not for the internal market. It’s for the external market,” he stressed. “We’re still focused on stabilising the domestic economy before we begin to aggressively engage external markets.”

The Fitch upgrade has been welcomed as a positive sign for investor confidence, especially among international creditors. Yet Khalid and other economic observers maintain that long-term stability will depend on meaningful reforms and sustained recovery within Ghana’s domestic economy.