President Akufo-Addo’s criticism won’t sway credit rating agencies – Theo Acheampong
Theo Acheampong, a Political Risk Analyst and Economist has underscored that leading credit rating agencies, including Fitch, Moody’s, and S&P, are unlikely to revise their ratings on Ghana in response to President Nana Akufo-Addo’s recent criticisms about the impact of their ratings on the Ghanaian economy.
Speaking during the NorvanReports and Economic Governance Platform Twitter Space Conversation titled “Restructuring Of Domestic Bonds, Where Do We Go From Here,” on Sunday, Acheampong emphasized that these agencies will adhere to their established methodologies when assessing the Ghanaian economy, despite the President’s criticism.
According to Acheampong, President Akufo-Addo’s complaints are unlikely to result in any meaningful adjustments to the negative ratings assigned to Ghana by the credit rating agencies. Acheampong remarked, “President Akufo-Addo’s criticisms on the rating agencies won’t prompt them to change their negative ratings on Ghana’s economy. They won’t alter their rating approach simply because the President has expressed dissatisfaction.” (sic)
President Akufo-Addo has previously attributed Ghana’s ongoing economic difficulties, in part, to downgrades issued by various rating agencies. Speaking at the 30th Annual Meeting of the African Export-Import Bank (Afreximbank) in Accra, the President highlighted the adverse effects of these downgrades, asserting that they have effectively cut off Ghana from the capital market. Akufo-Addo argued that such actions have exacerbated the nation’s liquidity crisis, transforming it into a solvency crisis.
Expressing his frustration, President Akufo-Addo stated, “I can confidently say as the AU champion for financial institutions and a leader of a country which recently had to deal with one of the most difficult periods in its post-Independence history; difficulties which were exacerbated by the reckless behavior of rating agencies that engaged in procyclical downgrades; shutting Ghana out of the capital market and turning a liquidity crisis into a solvency crisis.”
While President Akufo-Addo seeks to address the impact of credit ratings on Ghana’s economy, the views of analysts like Acheampong shed light on the nuanced relationship between the government, credit rating agencies, and the nation’s economic stability. As Ghana navigates the repercussions of these ratings, the attention now turns to how the country will address its economic challenges and pursue avenues for recovery.
