fitch

IMF Bailout To Depend On Government’s Ability To Achieve 55% Of Debt To GDP – Fitch
22 Mar

IMF Bailout To Depend On Government’s Ability To Achieve 55% Of Debt To GDP – Fitch

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The International Monetary Fund support for Ghana will likely depend on the government’s ability to show a path towards bringing the present value of debt to 55% of Gross Domestic Product, international ratings agency, Fitch Ratings, has disclosed that. This will be over the forecast horizon on the basis of the IMF/World Bank debt sustainability analysis and the ability of official bilateral creditors to provide financing assurances in the context of the Common Framework external debt restructuring that the Ghana government has requested. In its comment after upgrading Ghana’s Long-Term (LT) Local-Currency (LC) Issuer Default Rating (IDR) to ‘CCC’ from…
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Expect More Downgrades Until IMF Deal Is Reached – Prof. Osei-Assibey
24 Feb

Expect More Downgrades Until IMF Deal Is Reached – Prof. Osei-Assibey

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A Senior Lecturer at the Department of Economics of the University of Ghana, Prof. Eric Osei-Assibey says Ghana should expect more downgrades from rating agencies until a deal is reached between government and external debt holders, as well as the International Monetary Fund (IMF). Speaking to Joy Business at the American Chamber of Commerce-Ghana 2023 Economic Outlook Report, Dr. Osei-Assibey described the recent downgrade by ratings agency, Fitch on Ghana’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating to Restricted Default from ‘C’ as worrying. “This is not good but once you have this negative information coming up every now and then…
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Fitch Downgrades Ghana’s Creditworthiness To Deeper Junk Status; Assigns ‘Restricted Default’ To Government Bonds
15 Feb

Fitch Downgrades Ghana’s Creditworthiness To Deeper Junk Status; Assigns ‘Restricted Default’ To Government Bonds

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International ratings agency, Fitch Ratings, has downgraded Ghana’s creditworthiness to further junk status. In its latest report on Ghana, it said “Fitch Ratings downgraded Ghana’s Long-Term Local Currency (LC) Issuer Default Rating (IDR) to Restricted Default (RD) from ‘C'”, it stated. It attributed the downgrade to the decision by government to embark on the debt exchange programme and the recent default on local bonds that matured on February 6, 2023 and another one which is due for payment this week. “The downgrade of Ghana’s local-currency denominated debt follows the completion of a domestic debt exchange offer by the Republic of Ghana.…
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Ghanaian Banks’ Capital To Weaken On Sovereign Debt Restructure – Fitch
29 Dec

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

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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…
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People Are Doing Things To Tarnish The Gov’t’s Image- Patrick Awuku Reacts To Fitch’s Report
07 Nov

People Are Doing Things To Tarnish The Gov’t’s Image- Patrick Awuku Reacts To Fitch’s Report

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A regional communicator for the New Patriotic Party (NPP), Patrick Yaw Awuku, has asserted that there are people who are only working and doing things to tarnish the image of the ruling government. This comes on the back of recent downgrading by Fitch. Speaking to Kwaku Dawuro on Movement in the morning show on Wontumi Radio/Movement TV, he said that "why should we be in our country and allow some people to say things for us to be worried. I get so worried, when we take corruption perception index seriously, which are not backed with evidence but with perception. I…
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Fitch Sees More Than 50% Chance Of Ghana Defaulting On Debt Repayment
07 Nov

Fitch Sees More Than 50% Chance Of Ghana Defaulting On Debt Repayment

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Rating agency, Fitch, sees more than 50% chance of Ghana defaulting on its debt repayment. According to the rating agency, the country’s sovereign credit rating may face another downgrade closer to default, if talks with the International Monetary Fund for a $3 billion package lead to debt restructuring. Does this mean a default by the country on repaying its debt will affect your investments in Government of Ghana securities such as Treasury bills and notes? Another question is, was President Akufo-Addo correct in saying that domestic debt will not face any ‘haircut’? Bloomberg is reporting that Ghana’s creditworthiness may be…
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Ghana Faces Possible Debt Default – Senior Director At Fitch
22 Sep

Ghana Faces Possible Debt Default – Senior Director At Fitch

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A Senior Director at ratings agency, Fitch, Mahin Dissanayake, has warned Ghana of a possible sovereign debt default, saying, any kind of debt restructuring could threaten the local banking sector. According to him, “default is a real possibility”. Speaking at a press conference, Mr. Dissanayake said “Ghanaian banks hold large volumes of government securities, so debt distress is going to put a lot of stress on the banks” he said. He explained that “the operating environment is looking very fragile.” According to him, reports that Ghana is planning to restructure that local currency debt as part of an IMF deal…
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