Moody's Ratings upgrades Ghana's credit rating to B3

Moody's Ratings has upgraded Ghana's long-term foreign and local currency issuer ratings from Caa1 to B3, reflecting a significant improvement in the country’s macroeconomic landscape. Alongside the upgrade, the agency revised Ghana's outlook from positive to stable. This change is primarily attributed to a substantial easing in domestic financing conditions, which has led to lower borrowing costs and a more sustainable path for government debt management under the current administration.

A key driver for the upgrade is the marked improvement in debt affordability. According to Moody's, interest payments now account for 17.2% of government revenue, the lowest level seen since 2012. The agency also noted that the government’s commitment to fiscal discipline and enhanced revenue generation is expected to stabilize total debt at approximately 50% of the Gross Domestic Product (GDP). These factors have collectively reduced liquidity risks and improved the government's ability to service its obligations despite ongoing external pressures.

The recovery is further supported by strong performance in the extractives sector, particularly through favorable global gold prices. These high prices have helped Ghana maintain a current account surplus since 2024, providing a buffer against external shocks. Moody's also highlighted that the stabilization of inflation and the implementation of institutional reforms have contributed to a more predictable economic environment. Consequently, the agency raised the country’s local and foreign currency ceilings, signaling increased confidence in Ghana’s political and economic stability.

While the outlook is positive, Moody's cautioned that the B3 rating remains sensitive to potential risks, including exchange rate volatility and fluctuations in commodity prices. The agency emphasized that maintaining the current momentum of fiscal consolidation is essential for future rating improvements. Any significant deviation from the current policy path or a sharp deterioration in financing conditions could exert downward pressure on the nation's credit profile.