Fitch cuts Ghana outlook to negative

Fitch Ratings said it has revised the outlook on the long-term foreign and local currency issuer default ratings of the Republic of Ghana to negative from stable.

At the same time, the agency said it has affirmed the long-term foreign and local currency issuer default ratings and the country ceiling at B+, respectively, and affirmed the short-term issuer default rating at B.

"The revision of the outlook on Ghana's ratings to negative reflects new data pointing to twin fiscal and current account deficits of 15% and 24% of GDP respectively in 2008 and double-digit inflation. The magnitude of these macroeconomic imbalances leaves Ghana poorly placed to navigate adverse global economic conditions and presents Ghana's newly elected National Democratic Congress government with some formidable challenges," said Paul Rawkins, senior director in Fitch's London-based sovereign rating team.

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