Debt restructuring and Gold Purchase drive Ghana’s credit upgrade by S&P

Ghana’s credit rating has been upgraded by S&P Global Ratings. It moved from ‘Selective Default’ (SD) to ‘CCC+’. The outlook is stable, showing progress in debt restructuring.

This upgrade follows Ghana's successful Eurobond debt restructuring. Ongoing negotiations with commercial creditors are also a factor. A formal debt restructuring agreement was made with official creditors in January 2025.

S&P noted that the upgrade reflects recent actions by authorities. They are working to restructure remaining commercial debt after a successful Eurobond exchange in October 2024.

The government is close to completing offers for external creditor loans. These mainly involve commercial banks.

This progress comes after local currency and Eurobond restructurings were completed. A memorandum of understanding with bilateral creditors was signed on January 29, 2025.

S&P also observed improvements in Ghana’s external position. Increased gold export receipts and foreign exchange reserves support this improvement.

Economic growth remains strong despite the lengthy debt restructuring process. Inflation is currently at 21.2% but is decreasing due to cedi appreciation and lower energy prices. The current account has shifted into surplus, increasing external liquidity.

Despite these advancements, S&P warned of ongoing challenges for Ghana. These include a high debt service burden and weak tax administration. Spending overruns during election years also pose risks.