"S&P Upgrades Credit Rating, Citing Strong Progress Under Finance Minister Ato Forson"

" S&P Upgrades Credit Rating, Citing Strong Progress Under Finance Minister Ato Forson \r\n\r\nIn a significant endorsement of Ghana\u2019s economic recovery efforts, global credit rating agency S&P Global Ratings has upgraded the country\u2019s foreign-currency sovereign credit rating from Selective Default (SD) to CCC+, reflecting renewed investor confidence and the positive momentum in economic management under the leadership of Finance Minister Dr. Cassiel Ato Forson.\r\n\r\nThe announcement, made on May 9, 2025, comes as Ghana makes decisive progress in restructuring its external debt and stabilizing its macroeconomic environment, following years of turbulence.\r\n\r\nAccording to S&P\u2019s latest report, Ghana\u2019s negotiations with its remaining commercial creditors are nearing completion \u2014 a key milestone that has restored credibility and eased fiscal pressure.\r\n\r\nS&P highlights that while challenges persist, the current administration\u2019s firm commitment to reforms is yielding tangible benefits. Inflation, though still elevated at 22%, is steadily falling, driven by a strengthening cedi and lower energy prices.\r\n\r\nThis progress, according to the report, reflects strong policy direction from the Ministry of Finance under Dr. Ato Forson.\r\n\r\nDr. Forson\u2019s stewardship has seen the launch of vital legislative reforms, including amendments to the Public Financial Management Act, reinstatement of fiscal rules, and steps to establish an independent fiscal council \u2014 measures aimed at ensuring prudent management of public finances.\r\n\r\nDespite inheriting significant fiscal arrears, the government is prioritizing expenditure-led consolidation over aggressive tax hikes, in line with conditions under the IMF\u2019s Extended Credit Facility (ECF) program.\r\n\r\nThe administration is targeting a primary surplus of 1.5% of GDP in 2025 and has committed to keeping expenditure growth below 10% annually over the next four years \u2014 a sharp departure from the 28% average increase seen over the past two decades.\r\n\r\nS&P projects that Ghana\u2019s public debt, net of liquid assets, will decline from 71.4% of GDP at end-2024 to 47.4% by 2028.\r\n\r\nInterest expenditure, once a crippling 48% of government revenue in 2021-2022, has fallen to about 25% following the debt restructuring.\r\n\r\nInflation, though still above target, is expected to ease gradually as monetary policy credibility improves.\r\n\r\nThe upgrade by S&P is a strong signal to the international investor community and development partners that Ghana is turning a crucial corner.\r\n\r\nWhile acknowledging lingering risks, including election-year spending pressures and external vulnerabilities, S&P notes that the country\u2019s improving external metrics, steady policy reforms, and supportive growth outlook justify the new, higher rating.\r\n\r\nWith Dr. Ato Forson at the helm of the Finance Ministry, Ghana\u2019s economic management appears firmly back on track \u2014 a development likely to further bolster investor sentiment and set the stage for sustainable, inclusive growth in the years ahead."

"S&P Upgrades Credit Rating, Citing Strong Progress Under Finance Minister Ato Forson"

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