The fiscal flexibility of Ghana's government is reduced by its large fiscal deficits, substantial supplier arrears, high debt levels, loss-making state-owned enterprises, and problems in the banking sector. In addition, there are concerns over a lack of clarity in oil sector regulation and in the management of the government's oil revenues. As a result, we are lowering the local and foreign currency sovereign credit ratings on Ghana. At the same time, we are lowering the transfer&convertibility assessment to 'B+', and the recovery on Ghana's foreign currency debt to '4'. The outlook is stable. The stable outlook is based upon our expectation of sound economic growth and that fiscal and economic reforms will continue. LONDON (Standard&Poor's) Aug.
