Fitch trims Ghana

Fitch Ratings said it downgraded Ghana's long-term foreign-currency issuer default rating to B- from B. The outlook is negative.

“The downgrade of Ghana's IDRs and negative outlook reflect the sovereign's loss of access to international capital markets in 2H21, following a pandemic-related surge in government debt. This comes in the context of uncertainty about the government's ability to stabilize debt and against a backdrop of tightening global financing conditions,” Fitch said in a press release.

The agency said it estimates that Ghana will face about $2.7 billion, 3.3% of GDP, in sovereign external interest service and amortization payments in 2022.

“We believe that the government can meet its external debt servicing without market access given its reserves, which we estimate at $7.9 billion at end-2021 (3.2 months of current external payments),” Fitch said.

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