Research Update: Ghana FC Ratings Affirmed At 'SD' And LC Long-Term Rating At 'CCC+'; Two More Eurobonds Downgraded To 'D'

On May 17, 2023, after Ghana's official creditors agreed to debt restructuring, the International Monetary Fund (IMF) approved Ghana's $3 billion extended credit facility (ECF) program and disbursed the first $600 million tranche. Under our baseline scenario, we do not project that the Ghanaian authorities will be able to bring overall government debt to GDP down to 55% by 2028 without higher write-downs, a stronger real exchange rate, lower domestic borrowing costs, or even higher economic growth. We lowered to 'D' (default) our issue ratings on two more commercial U.S. dollar-denominated Eurobonds issued by Ghana, after the country missed payments. Also, we affirmed our 'SD/SD' (selective default) long- and short-term foreign currency ratings and our 'CCC+/C' long- and short-term local

...- On May 17, 2023, after Ghana's official creditors agreed to debt restructuring, the International Monetary Fund (IMF) approved Ghana's $3 billion extended credit facility (ECF) program and disbursed the first $600 million tranche. - Under our baseline scenario, we do not project that the Ghanaian authorities will be able to bring overall government debt to GDP down to 55% by 2028 without higher write-downs, a stronger real exchange rate, lower domestic borrowing costs, or even higher economic growth. - We lowered to 'D' (default) our issue ratings on two more commercial U.S. dollar-denominated Eurobonds issued by Ghana, after the country missed payments. - Also, we affirmed our '##/##' (selective default) long- and short-term foreign currency ratings and our '###+/C' long- and short-term local currency ratings on Ghana. The outlook on the long-term local currency rating is stable....

Research Update