Moody’s Upgrades Ghana’s Credit Rating On Debt Restructuring Progress

Key Takeaways

Moody’s outlook contrasts with Fitch, which recently maintained Ghana’s rating, citing outstanding external debt that has yet to be restructured. Credit ratings assess a country’s ability to repay its debt and reflect its economic stability. Agencies like Moody’s and Fitch assign these ratings, influencing investor confidence. A higher credit rating indicates lower risk, making the country more attractive for foreign investment, potentially leading to lower borrowing costs for the government. Conversely, a downgrade signals higher risk, causing investors to demand higher returns or avoid lending altogether. Foreign investors closely monitor these ratings when making decisions about sovereign bonds, infrastructure projects, and direct investments. Upgrades often lead to increased capital inflows, while downgrades can trigger capital flight, higher interest rates, or stricter borrowing terms, which can further strain a country’s economy and hinder growth.