S&P rates Ghana bond B+

Standard & Poor's said it assigned a B+ long-term senior unsecured debt rating with 3 recovery rating to the proposed debut global bond to be issued by the Republic of Ghana (B+/stable/B).

The ratings are constrained by the country's narrow economic base, low development and a widening of fiscal and current account balances, the agency said.

The ratings are supported by political stability, solid gross domestic product growth and the easing of external and fiscal balance sheet pressures following various phases of debt relief, S&P said. Ghana also benefits from exceptional donor support, according to the agency.

"Under the default scenario, we expect that Ghana would continue to pursue market-friendly policies, mainly due to the economy's dependence on trade with industrialized countries," S&P credit analyst Farouk Soussa said in a written statement. "Nevertheless, it would have limited capacity to repay debt in full."

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