Government reacts as Moody’s reject an appeal to downgrade Ghana’s rating
Moody’s Investors Services, according to the Finance Ministry, rejected its appeal against a downgrade of its credit rating.
In a press statement issued by the Ministry, the Ministry asserted the downgrade was despite concerns raised by government which the rating agency did not factor into its decision.
Touching on the rating action by Moody’s, the Ministry furthered that, “We are at odds to understand Moody assertion of the deterioration of Ghana’s institutional strength given Ghana’s reputation as a beacon of democracy in Africa.”
“In a clearly contradictory manner, Moody’s justifies the ‘Stable outlook’ despite the downgrade to ‘Caa1’ by acknowledging government’s strong track record in delivering effective fiscal policies and the maintenance of a variety of funding sources.”
“The Government of Ghana is therefore completely puzzled by the decision to downgrade Ghana’s credit rating to Caa1 despite the medium-term economic and fiscal focus of the government underpinned by key fiscal consolidation reforms such as the policy decision to cut expenditure by 20% as recently announced by the Finance Ministry,” it added.
According to the Ministry, it will appeal against the rating action by Moody’s.
Press Release on Moody’s Rating by Fuaad Dodoo on Scribd
