The ratings on Ghana reflect Standard&Poor's Ratings Services' view of the cumulative effect of a large and erratic fiscal deficit, the weak payment culture demonstrated by substantial supplier arrears, high debt levels, loss-making state-owned enterprises (SOEs), and problems in the banking sector. In addition, there are concerns over a lack of clarity in the regulation of the oil sector and in the management of the government's oil revenues. These weaknesses are partly offset by strengthening oil production volumes. Following the peaceful, but intensely fought, elections held in December 2008 and January 2009, the new administration committed to reducing the economy's imbalances. In our view, however, its medium-term fiscal targets are unlikely to be achieved. We expect Ghana's general
