- Fitch will assess Ghana's ability
- The rating agency has affirmed Ghana's current status
- This indicates a degree of confidence
Rating agency Fitch has outlined the conditions for assigning a credit rating to Ghana.
The country must successfully restructure its foreign debt and demonstrate a clear path to restoring macroeconomic stability.
Once these milestones are achieved, Fitch will assess Ghana’s ability and willingness to honor its foreign currency debt to determine its creditworthiness.
The rating agency has affirmed Ghana’s current status as in “Restrictive Default.”
Fitch’s proprietary model suggests a potential ‘B-‘ rating for Ghana, but the agency’s rating committee has opted not to rely solely on this model.
Instead, a more qualitative assessment will be conducted.
Crucially, Ghana’s ability to convert local currency into foreign currency without restrictions is a key factor influencing its Country Ceiling, which Fitch has set at ‘B-‘.
This indicates a degree of confidence in the country’s foreign exchange market.
Overall, Fitch’s stance is that Ghana’s creditworthiness is directly linked to its progress in debt restructuring and subsequent economic recovery.
