Fitch Ratings has downgraded Ghana's Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) to 'RD' from 'CCC'.
It has also downgraded to 'CC' from 'CCC' and subsequently withdrawn the issue ratings on five local-currency bonds issued prior to the domestic debt exchange.
It affirmed the issue rating of local-currency bonds issued on the completion date of the domestic debt exchange at 'CCC.'
It attributed the rating action to missed payments on some of the local-currency bonds issued prior to the domestic debt exchange.
"The downgrade of Ghana's LTLC IDR to 'RD' reflects the missed payments on some local-currency-denominated bonds that were not tendered or that are held by entities not eligible for participating in the domestic debt exchange".
These five bonds are ISIN no. GHGGOG044744, GHGGOG066150, GHGGOG043563, GHGGOG065475, GHGGOG044751.
Uncertainty regarding clearing of missed payments
Following a meeting with representatives of individual bondholders and pension funds, the government announced having reached an agreement on a pathway towards the settlement of the outstanding debt obligations by April 28, 2023.
Fitch said it its view, this announcement does not clarify whether missed payments will be settled to all categories of holders of 'old bonds' or only to these two categories.
New Local-Currency bonds affirmed
Fitch affirmed the 'CCC' issue rating of local-currency bonds issued on the completion date of the domestic debt exchange programme (the "new bonds") that was assigned on March 22, 2023.
The first coupon payments on the new bonds are due in August 2023.
Latest Stories
-
Yaw Nsarkoh: Bit by bit we will understand China
3 hours -
Looted and returned: Asante royal artefacts on display for public viewing at Manhyia Museum
4 hours -
Suspected killer in Kasoa land dispute shooting not a National Security operative
4 hours -
Ghana appoint four Para Athletics coaches in Preparation for Paris 2024
4 hours -
Kumasi Cheshire Home decries inadequate equipment; seeks public support
5 hours -
UCL: Niclas Fullkrug hands Dortmund first leg advange over PSG
5 hours -
GPL: Accra Lions beat Hearts of Oak to go third
7 hours -
Seek higher grounds as rains intensify – GMet warns
7 hours -
May Day: Sam Ankrah promises to prioritise welfare and well-being of workers if elected president
7 hours -
Bawumia plans door-to-door campaign for 2024 polls
7 hours -
GAF condemns ‘unprovoked’ fatal shooting of soldier in Kasoa land dispute
8 hours -
OSP’s request for money laundering probe against Cecilia Dapaah baseless – AG advises EOCO
8 hours -
Obofour Raphael releases ‘Asem Yi Di Ka’ EP
8 hours -
‘Operation Clean Your Surroundings’: Popular Kenkey joint and public toilets in Takoradi shut down
9 hours -
GFA boss Kurt Okraku graces Dreams FC’s dinner to celebrate CAF Confederation Cup exploits
9 hours