CREDIT rating agency, Moody's has revised Ghana's sovereign credit outlook from 'stable' to 'positive,' while affirming its long-term foreign-currency rating at Caa1.
The revision to a positive outlook reflects growing confidence that Ghana's macroeconomic conditions are gradually stabilising after a period of severe financial distress.
Moody's in a statement cited improvements in fiscal discipline, including efforts by the government to reduce budget deficits and enhance revenue mobilisation as the basis of the revision of Ghana's outlook.
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It said those measures, combined with expenditure controls, were beginning to restore some credibility to public financial management.
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It said Ghana had made progress in re-entering the local debt market following its debt restructuring programme, which was necessitated by the economic crisis in 2023.
Moody's further said another key factor underpinning the outlook upgrade was the easing of domestic financing pressures.
"Domestic financing costs have declined amid monetary easing and an improved fiscal position, while the resumption of domestic bond issuances will, if sustained, gradually reduce rollover risk," Moody's stated.
It said lower borrowing costs and improved liquidity conditions suggested that the government was gradually regaining access to funding without excessively crowding out private sector credit.
Moody's said Ghana's engagement with the International Monetary Fund had played a crucial role in supporting policy reforms and anchoring investor confidence.
It said the IMF-backed programme had provided both financial support and a framework for structural adjustments aimed at restoring debt sustainability and macroeconomic stability.
Moody's said the early signs of success in inflation control and exchange rate stabilisation had further reinforced its optimistic outlook.
Moody's said despite these positive developments, Ghana's debt burden was still high, and the country remained vulnerable to external shocks, particularly fluctuations in commodity prices and global financial conditions.
It said while progress had been made, the durability of fiscal consolidation and reform efforts would be critical in determining whether the positive outlook translated into a full rating upgrade.
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