Fitch Ratings Archives - Wontumi Online

21 Jul

Global Sovereign Interest Costs Hit Over $2Trn – Fitch Ratings

wontumionlineBusinessdeveloped markets, emerging markets, Fitch Ratings, interest costs

Fitch Ratings has indicated it expects its portfolio of rated sovereigns to pay around $2.3 trillion in interest costs in 2023. This represents a steep rise in interest spending since 2020, with a greater increase of 47% in developed markets (DMs), compared with 40% in emerging markets (EMs). The trend reflects an end to the era of low inflation and, at least for DMs, a period of exceptionally low-interest rates. Aggregate annual government interest payments by Fitch-rated DM sovereigns were fairly steady at around $900 billion to $1 trillion over 2007-2021, even though their median level of government debt/Gross Domestic…

13 Jul

Fitch Affirms African Development Bank At ‘AAA’ With Stable Outlook

wontumionlineBusinessAFDB, Fitch Ratings, IDR

Fitch Ratings has affirmed African Development Bank (AfDB)’s Long-Term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook. According to the rating agency, AfDB’s ‘AAA’ rating is driven by the extraordinary support the bank receives from its non-regional shareholders, which we assess at ‘aaa’. “The shareholders’ ‘strong’ propensity to support the bank translates into a zero-notch adjustment to our assessment of the capacity to support (aaa). The rating is also supported by the bank’s Standalone Credit Profile (SCP), reflecting the lower of its assessments of ‘aa’ for solvency and ‘aaa’ for liquidity”, it explained. Fitch placed the US’s ‘AAA’…

26 Apr

FULL TEXT: Fitch Downgrades Ghana’s LTLC IDR To ‘Restrictive Default’

wontumionlineBusinessFitch Ratings

Fitch Ratings - Hong Kong - 21 Apr 2023: Fitch Ratings has downgraded Ghana's Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) to 'RD' from 'CCC'. Fitch has also downgraded to 'CC' from 'CCC' and subsequently withdrawn the issue ratings on five local-currency bonds issued prior to the domestic debt exchange. Fitch has affirmed the issue rating of local-currency bonds issued on the completion date of the domestic debt exchange at 'CCC.' Fitch has affirmed Ghana's Long-Term Foreign-Currency (LTFC) IDR at 'RD'. Fitch typically does not assign Outlooks to sovereigns with a rating of 'CCC+' or below. A full list of…

22 Mar

Ghana’s Long-Term Local-Currency IDR Upgraded By Fitch From ‘RD’ To ‘CCC’

wontumionlineBusinessFitch Ratings

International Ratings firm, Fitch has upgraded Ghana's Long-Term (LT) Local-Currency (LC) Issuer Default Rating (IDR) to 'CCC' from 'RD' (Restrictive Default) In addition to this development, Fitch said ratings on local-currency bonds issued domestically under the Domestic Debt Exchange Programme that have not matured yet, have also been upgraded to 'CCC' from 'D'. A statement released on its website however reaffirmed Ghana's Long-Term Foreign-Currency (FC) IDR at 'RD', representing Restrictive Default. “Fitch typically does not assign Outlooks to sovereigns with a rating of 'CCC+' or below,” the firm explained. It further continued, “The issue ratings on local-currency notes issued domestically…

29 Dec

Ghanaian Banks’ Capital To Weaken On Sovereign Debt Restructure – Fitch

wontumionlineBusinessFitch Ratings, sovereign debt

Ghanaian banks could face significant pressure on their capitalisation due to the restructuring of local-currency (LC) sovereign debt, Fitch Ratings says. Fitch believes banks will suffer large economic losses when they exchange their existing debt for new bonds with lower coupons and longer tenors. This could lead to material capital shortfalls at some banks but we expect regulatory forbearance to mitigate the impact, enabling banks to remain compliant with minimum capital requirements. The two Ghanaian banks rated by Fitch have sizeable capital buffers that should help their ratings withstand the LC debt exchange, even disregarding regulatory forbearance. The LC debt…