Fitch rates Ghana notes BB-

Fitch Ratings said it expects to assign a BB- rating to Ghana’s up to $1 billion partially guaranteed notes.

The bonds will benefit from a partial credit guarantee provided by the International Development Association for scheduled debt-service payments of up to 40% of the original principal, Fitch said.

While the association’s guarantee can be used to cover specific debt-service payments, which reduces the bonds’ potential for default, Fitch said it believes the primary benefit of the guarantee will be to increase the possible recovery in the event of issuer default.

The notes form part of Ghana’s budget financing and debt-management strategy for 2015, the agency said, and will be used solely for refinancing existing debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.