Moody’s Revises Ghana’s Outlook to Positive on Domestic Financing Improvement
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Credit ratings agency Moody’s revised Ghana’s outlook to “positive” from “stable” on Friday, citing an improvement in the country’s finances. The gold-, oil- and cocoa-producing nation in West Africa is emerging from its most severe economic crisis in decades.
Moody’s said domestic financing costs have declined amid monetary easing and an improved fiscal position, while the resumption of domestic bond issuances would, if sustained, gradually reduce rollover risk. Ghana lifted restrictions on new domestic bond issuance in March and sold its first seven-year domestic bond in April after pausing local borrowing in 2023 following a debt default.
The agency kept Ghana’s long-term rating at “Caa1,” saying the country still faces credit constraints and remains highly exposed to exchange-rate and commodity-price volatility. Moody’s also flagged risks from the ongoing Middle East conflict, which could affect the external environment.
Finance Minister Cassiel Ato Forson said in November that Ghana was poised for sustained growth in 2026. The outlook revision adds to signs of recovery, but Moody’s said the country still has a long road ahead before its financing position is fully normalised.
