International ratings agency, Moody’s has completed a review of Ghana’s ability to raise money on the international capital market, but assessment will not be subject to credit rating action anytime soon

Moody’s said the credit profile of Ghana reflects economic strength, which balances strong growth potential against small scale and low but growing wealth levels.

It further said the institutions and governance strength reflect an improved fiscal governance framework, balanced by recurring revenue underperformance against budgeted targets.

It however expressed concern about the elevated debt burden in addition to the prospect of further contingent liabilities or possible obligation materializing in the energy sector, whose debt is close to a billion dollars. 

“The credit profile of Ghana (issuer rating B3) reflects "ba2" economic strength, which balances strong growth potential against small scale and low but growing wealth levels; "ba3" institutions and governance strength, reflecting an improved fiscal governance framework, balanced by recurring revenue underperformance against budgeted targets; "caa3" fiscal strength reflects the elevated debt burden and weak debt affordability metrics in addition to the prospect of further contingent liabilities materializing in the energy sector”.

The US based international ratings agency also highlighted the country's exposure to international capital flow reversals leading to exchange rate instability and high borrowing costs, stressing “"b” reflects susceptibility to event risk driven by government liquidity, highlighting the country's exposure to international capital flow reversals leading to exchange rate volatility and to high borrowing costs.”

Ghana may head to the Eurobond market to raise between three to five billion dollars in March this year, but that will be dependent on market conditions as the coronavirus pandemic still lingers on. 

In the midst of the coronavirus pandemic in April last year, Moody’s downgraded Ghana’s economic outlook to negative from positive.

It however affirmed Ghana’s long-term local and foreign currency issuer and foreign currency senior unsecured bond ratings at B3.

This meant the nation could borrow with little difficulty on the international market.