On June 2, 2008, Standard&Poor's Ratings Services affirmed its 'B+' long-term and 'B' short-term sovereign credit ratings on the Republic of Ghana. The outlook is stable. We also affirmed the Republic's 'BB-' transfer and convertibility assessment. The affirmation reflects accumulating evidence that Ghana will benefit substantially from offshore oil production from the end of this decade, offsetting the ongoing weakness in its fiscal and external performance by 2011 at the latest. At the same time, however, Ghana's oil finds increase the importance of strong fiscal governance and monetary management to rating prospects. Fiscal performance deteriorated very markedly in 2006, with a general government deficit (including grants) of 6% of GDP, from 1% in 2005. The deficit increased further
