March 22, 2023

Fitch Upgrades Ghana’s Local-Currency

International rating agency Fitch has upgraded Ghana’s Long-Term (LT) Local-Currency (LC) Issuer Default Rating (IDR) for the first time in many months.

Ghana has been upgraded to ‘CCC’ from Restricted Default (RD)- which meant Ghana had experienced an uncured payment default or distressed debt exchange on a bond, loan or other material financial obligation, but had not entered into bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedure, and had not otherwise ceased operating.

In mid-February, the country’s Local Currency was downgraded to RD citing the confirmed Domestic Debt Exchange Programme (DDEP); the Material Reduction in Terms; Distressed Local Currency Debt Exchange; Missed Local Currency Principal Payment; projected reduction in interest payment in 2023; Suspension of payments on selected external debt, etc.


Fitch attributed the upgrade to the completed DDEP, resumption in payments on Local Currency bonds and reduction in Ghana’s cash fiscal deficit in 2023 to 4.5% of GDP in 2023.

Meanwhile, Fitch finds that the country’s solvency remains critical with its financing still constrained.

In a related development, the issue ratings on local-currency bonds issued domestically that have not matured yet have also been upgraded to ‘CCC’ from ‘D’.


Meanwhile, Fitch affirmed Ghana’s Long-Term Foreign-Currency (FC) IDR at ‘RD’ where it was pegged in February 2023.


Source: Fuseini

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