The ratings on the Republic of Ghana (B+/Stable/B) are constrained by a narrow economic base, low development, and a widening of fiscal and current account balances, despite the considerable support of donors. The ratings are supported, however, by a comparatively stable political system, and the easing of external and fiscal balance-sheet pressures following various phases of debt relief. There is accumulating evidence that Ghana will benefit substantially from offshore oil production from 2010 onward, 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
