Moody's: Ghana view to negative

Moody's Investors Service said it changed the outlook on Ghana's B1 government bond rating to negative from stable.

Concurrently, the agency affirmed the government's B1 issuer and bond ratings.

Moody's said the key drivers of the action include the Ghanaian government's weak fiscal fundamentals and rising debt levels, which reflect both continued spending overruns and relatively low revenue ratios compared with rating peers, despite rapid growth.

The rating actions were also driven by the weakening of Ghana's external position on the back of large external imbalances and a low level of foreign-exchange reserves, which have increased the country's susceptibility to event risk in view of the strong correlation between domestic economic activity and the global business and commodity cycles, the agency said.

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