Ratings agency Standard and Poors has downgraded Ghanas credit ratings from B to B minus. myjoyonline/business/2014/October-26th/ghanas-credit-ratings-downgraded-to-b-.php This means that Ghanas ability to pay its debts on time and has been lowered even further. The downgrade of governments credit worthiness was revealed in the Agencys latest assessment of the Ghanaian economy. The latest report says Ghanas finances may not improve anytime soon, even if it gets support from lenders like the International Monetary Fund (IMF). According to Standard and Poors the downgrade “reflects inherit risks in financing Ghanas wide fiscal and current account deficits”. The agency adds that it sees Ghanas finances as very weak, because of the rising wage bill and that government may have problems implementing proposals by the IMF to help stabilize the economy. Standard and Poors puts Ghana’s Net International Reserves at 1.2 billion dollars, whilst it projects that the countrys reserves would continue to weaken, putting pressure on the Ghana cedi, unless government is able to secure funding from IMF and other Multi-nationals from early next year. The agency also revised Ghanas credit outlook from negative to stable; but says it would further downgrade Ghana if the countrys reserves worsen in the coming years.
Posted on: Sun, 26 Oct 2014 15:04:36 +0000
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