Fitch Further Downgrades Ghana to ’CC’ (Junk Status)

Fitch ratings further downgrade Ghana to junk status. The rating company has rated Ghana as high risk and default in terms of paying back loans. Not only this rating agency but other companies or institution like the International Monetary Fund (IMF) has also described Ghana first country with the highest loan owned to them in Africa.

In terms of Africa and the investment world, Ghana is not having a good stand since they have been adding debt upon debt with few policies and legalities to handle mismanagement.

This is the second time that Fitch rated Ghana in terms of how worthy the country is in terms of its credit. The president, Nana Akuffo Addo in his speech at the UN Conference described the rating agencies as being unfair in terms of their ratings to Ghana in terms of the global economic crisis.

Ghana is likely to pursue debt restructuring as Loudsilence media disclosed that they are involving a United Based Bank to do the debt restructuring for the country. Debt restructuring is becoming necessary due to the surge in Ghana’s debt, increasing cost of living, inflation skyrocketing and low revenue as a percentage of Gross Domestic Products (GDP).

We strongly believe this will be in a form of debt exchange under the criteria adopted. The reports about Ghana negotiating a restructuring have not been denied or confirmed since it started.

Read: Ghana’s Debt Stock Ballooned Ghc391.9 bn

Fitch downgrades Ghana means that Ghana’s debt trying to get IMF to support as require debt treatment and policies from the government since revenue earned is lower than expected. Ghana is facing high debt making it difficult to go to the Eurobond market which had been the regular source of external funding source.

The government had taking a lot of loans including the recent USD750 million from the Africa Export-Import Bank and USD250 million from global commercial banks to cushion the economy. Fitch further downgrades Ghana to indicate that the country’s debt is unsustainable. The most recent one conducted by the IMF as a debt sustainability analysis in 2021 indicated that Ghana is at a high risk of debt distress and unlikely to access the market. The interest rates continue t rise day after day making it difficult to sustain.

Fitch additionally said it expects outside supporting admittance to remain restricted until essentially an IMF program is concurred, as Ghana is probably going to remain kept out of Eurobond markets, which had been the country’s standard wellspring of outside funding.


The public authority got a $750 million term credit from African Product Import Bank (BBB/Stable this year and $250 million in partnered advances from worldwide business banks. It can likewise utilize its sinking store.


“We gauge Ghana faces around $3 billion of outside obligation administration costs in 2023, including amortization and interest”, it added.