Fitch rates Ghana bond B+

Fitch Ratings said it will assign the Republic of Ghana's forthcoming debut sovereign bond a rating of B+. This rating is in line with Ghana's B+ long-term foreign-currency issuer default rating, which has a positive outlook.

Ghana has emerged as a trend setter in sub-Saharan Africa, having entrenched political stability and put in place macroeconomic policies that have secured it extensive external debt relief under a series of international creditor-driven initiatives, Fitch said.

Debt relief has brought Ghana's public and net external debt ratios in line with B-rating category medians - central government debt/GDP fell to 41% in 2006 from 70% in 2005 - and created a platform for faster economic growth and development, the agency said.

With this bond issue, Ghana becomes the first post-HIPC (heavily indebted poor countries) debt-relief candidate to access international capital markets, the agency said.

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