The ratings on the Republic of Ghana are constrained by our view of the country's continued weak fiscal management, which has contributed to large fiscal deficits and supplier arrears. The ratings are also constrained by low economic development and--despite oil production commencing--a still-narrow economic profile. The ratings are supported by strong GDP growth, strengthening oil production volumes (which over the medium term will likely support improved fiscal and external balances), and a track record of political stability. In our view, the government's weak payment culture and fiscal discipline continues to be highlighted by the net new accumulation in 2010 of further arrears amounting to 1.9% of GDP, raising the stock of arrears to an estimated 5.5% of GDP at year-end
