fitch Archives - Wontumi Online

06 May

French Banks Exit From Africa Will Create Opportunities For Local Banks – Fitch

Wontumi1Businessfitch, french banks

Fitch Solution, an international rating agency, says French banks exit from Africa will create more opportunities for local banks. The rating agency said their exit could potentially spur growth and competition for local banks. “We see significant opportunities for local and regional banks in Africa despite the challenges. Some banking groups with pan-African ambitions should eventually gain enough scale to compete with long-established institutions. Increasing competition among pan-African banking groups should boost credit growth. We expect credit growth to accelerate with the exit of French banks, albeit mainly in lower-risk segments, which will help preserve asset-quality metrics,“ the rating agency…

22 Apr

Fitch Solutions Forecasts End-Year Cedi To Dollar Rate Of GH¢12.25; Currency Depreciates 11% To Dollar

Wontumi1BusinessDOLLAR RATE, fitch

Fitch Solutions is forecasting an end-year cedi to dollar rate of GH¢12.25 to one US dollar, arguing the the Ghanaian cedi will recoup some of its recent losses in the months ahead. In its Sub-Saharan Africa Currency Round-Up, it said the cedi will strengthen as the government makes progress regarding the restructuring of its commercial debt. “We also expect that the Ghanaian cedi will recoup some of its recent losses in the months ahead, ending the year at GH¢12.25/USD”. The local currency has depreciated by 11.0% against the US dollar so far this year, positioning it among the worst performing…

19 Apr

Fitch Solutions Projects 19.0% Average Inflation For Ghana In 2024

Wontumi1Businessfitch, inflation

Fitch Solutions is projecting an average inflation of 19.0% for Ghana in 2024. This is lower than the International Monetary Fund’s 22.3%. According to the London-based firm, the lower inflation will alleviate pressure on household finances and boost the purchasing power of consumers. A Senior Country Risk Analyst at Fitch Solutions, Mike Kruiniger said though the March 2024 inflation showed an uptick, this can be primarily attributed to base-side effects and expects inflation to resume a downward trend in the coming months. “So lower inflation will alleviate pressure on household finances and increase the purchasing power which will support economic…

07 Nov

Cedi To Remain Stable Against Dollar In Near Term; $1 Equals ¢12.01

Wontumi1BusinessCEDI, euro, fitch, Pound

The cedi will remain stable against the US dollar in the near term as the upgrade in Ghana’s rating by Fitch Ratings is expected to positively impact sentiments around the local currency, some analysts have stated. Following the successful conclusion of the domestic debt exchange programme, Fitch, upgraded Ghana's Long-Term Local Currency Issuer Default Rating from Restrictive Default to ‘CCC’. This they believe, will impact on the cedi in the short term. The rating agency also maintained a stable outlook on the local currency IDR and expects that a successful external debt restructuring with the resultant disbursement from the International…

02 Nov

Fitch Predicts Increase In BoG’s Foreign Reserves To $7.7Bn In 2025

Wontumi1BusinessBoG, fitch, Foreign reserves, import cover

Ratings agency, Fitch, is predicting an increase in the Bank of Ghana’s foreign reserves to $7.7 billion in 2025, from $4.4 billion in 2022. This will put the import cover or months of current external payments to three months. “Current account surpluses and projected disbursements from international financial institutions will increase Bank of Ghana's foreign reserves by an estimated $1.1 billion per year in 2023-2025, after a $4.4 billion fall in 2022, reaching $7.7 billion (about three months of current external payments) in 2025, from 1.6 months in 2022.” The rating agency also said non-payment of interest on selected external…

02 Aug

Fitch Downgrades US Credit Rating From AAA To AA+

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The US government’s credit rating has been downgraded following concerns over the state of the country’s finances and its debt burden. Fitch, one of three major independent agencies that assess creditworthiness, cut the rating from the top level of AAA to a notch lower at AA+. Fitch said it had noted a “steady deterioration” in governance over the last 20 years. US Treasury Secretary Janet Yellen called the downgrade “arbitrary”. It was based on “outdated data” from the period 2018 to 2020, she said. Investors use credit ratings as a benchmark for judging how risky it is to lend money…

21 Jun

World Growth Holding Up, But Interest Rates To Peak Higher – Fitch

Wontumi1Businessfitch, Global economy

Fitch Ratings has disclosed that global growth is showing near-term resilience but core inflation remains stubbornly high. In its n its June Global Economic Outlook (GEO), it said central banks will have to continue tightening policy in the coming months. With monetary policy adjustments and their impact on the economy proving more protracted, the rating agency said the global growth outlook for 2024 has deteriorated. “World activity is holding up better than expected and Fitch has raised its forecast for global GDP growth in 2023 to 2.4%, from 2.0% in the March GEO”. Fitch opined that the biggest upgrades have…

12 Jun

Access Bank Secures B- IDR With Stable Outlook From Fitch

Wontumi1BusinessAccess, fitch, Issuer Default Rating

Rating agency, Fitch, has affirmed Access Bank Plc’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a Stable Outlook. It also affirmed the bank’s National Long-Term Rating at ‘A+(nga)’ and assigned a Stable Outlook. According to Fitch, Access Bank’s National Long-Term Rating balances its leading franchise against weaker core capitalisation and profitability than higher-rated peers. Again, Access Bank’s IDRs, it said, are driven by its standalone creditworthiness, as expressed by its ‘b-‘ Viability Rating (VR). Leading Franchise Access Bank is Nigeria’s largest bank group, accounting for 16% of banking system assets at end-2022. According to Fitch, it has acquired several…