Ghana’s Credit Rating Raised to ‘CCC+’ by S&P Following Debt Restructuring Progress, Macro Stability Gains
S&P Global Ratings has upgraded Ghana’s foreign currency issuer credit rating from ‘SD’ (Selective Default) to ‘CCC+’, citing the country’s progress in debt restructuring and a more favourable macroeconomic trajectory.
The global rating agency made the announcement following Ghana’s successful completion of key phases of its domestic debt exchange programme and ongoing negotiations with external creditors.
“We affirmed our ‘CCC+’ issue ratings on Ghana’s debt. We also affirmed our ‘CCC+/C’ long- and short-term local currency ratings on Ghana. The outlook on both the foreign and local currency ratings is stable. Ghana’s transferability and convertibility assessment remains ‘CCC+’,” stated the agency in its latest assessment dated May 9, 2025.
The rating upgrade reflects improved external indicators, particularly a surge in gold export earnings and a steady accumulation of foreign exchange reserves. According to S&P, these developments point to enhanced external liquidity and a strengthened capacity to meet Ghana’s near-term external obligations.
Ghana’s credit outlook has continued to improve following the successful restructuring of its Eurobond debt in October 2024, and the January 29, 2025 signing of a Memorandum of Understanding (MoU) with bilateral creditors under the G20 Common Framework.
Sustained reforms and economic resilience
The latest rating also recognises the Ghanaian government’s ongoing fiscal reforms aimed at addressing long-standing economic vulnerabilities. Inflation, though still high at 21.2%, has declined to an eight-month low, supported by a stronger cedi that has helped moderate imported inflationary pressures. The local currency, which had crossed the GH¢17 mark in 2023 on the retail market, is now trading around GH¢14, reflecting improved investor confidence.
Finance Minister Dr. Cassiel Ato Forson, commenting on the improved ratings, noted that the gains were not short-term fluctuations but indicative of well-coordinated fiscal and monetary policy actions. “These achievements are the result of robust fiscal planning and targeted policy measures to restore macroeconomic stability,” he stated.
Cautious optimism
Despite the positive momentum, S&P has cautioned that Ghana’s credit rating could face downward pressure over the next 12 to 18 months if fiscal performance weakens or external financing conditions become tighter.
Any such deterioration, the agency warns, could increase Ghana’s already high debt servicing costs and undermine its capacity to refinance upcoming maturities, potentially endangering fiscal and external stability.
While acknowledging the possibility of some lenders emerging as holdout creditors, S&P believes the risk of disruption to the ongoing debt restructuring is mitigated by the advanced stage of negotiations, comparability of treatment provisions under the G20 Common Framework, and most-favoured creditor clauses in the restructured bonds.
The upgrade by S&P comes as a significant boost to the government’s efforts to rebuild economic credibility and restore access to international capital markets following a period of fiscal stress and debt distress.
