Ghana Ratings Affirmed At 'B-/B'; Outlook Remains Stable

OVERVIEW Ghana's economic growth in 2016 will likely be lower than initially projected owing to technical issues reported at the Jubilee oil field. Production at the TEN oil field commenced in August 2016 and is expected to partly offset the volumes lost during the Jubilee interruption. A more reliable power supply and increased oil production from 2017 onward should sustain medium-term growth at more than 6.5%. Ghana's fiscal consolidation remains broadly on track, with a projected fall in the deficit to about 5.5% of GDP in 2016, mainly thanks to the introduction of revenue measures such as higher value-added tax and tight expenditure control. We are therefore affirming our 'B-' long-term and 'B' short-term ratings on Ghana. The stable outlook

...OVERVIEW Ghana's economic growth in 2016 will likely be lower than initially projected + owing to technical issues reported at the Jubilee oil field. Production at the TEN oil field commenced in August 2016 and is expected to + partly offset the volumes lost during the Jubilee interruption. A more reliable power supply and increased oil production from 2017 onward should sustain medium- term growth at more than 6.5%. Ghana's fiscal consolidation remains broadly on track, with a projected fall in + the deficit to about 5.5% of GDP in 2016, mainly thanks to the introduction of revenue measures such as higher value-added tax and tight expenditure control. We are therefore affirming our 'B-' long-term and 'B' short-term ratings on + Ghana. The stable outlook balances our opinion of the vulnerability inherent in Ghana's + fiscal and external deficits with policy support provided by the International Monetary Fund. RATING ACTION On Oct. 21, 2016, S&P Global Ratings affirmed its 'B-/B' long- and...

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