Fitch has affirmed the issue rating on Ghana's US dollar-denominated notes due October 2030 at 'CC'.

The notes benefit from a partial credit guarantee backed by the International Development Association of the World Bank for scheduled debt service payments up to 40% of the outstanding principal amount, supporting higher recoveries.

The affirmation of Ghana's bond partially guaranteed by IDA reflects Fitch’s estimation of a nominal recovery rate in the range 51% to 70%, although the modalities of the treatment of this bond are still being discussed. IDA has already made three coupon payments in 2023 and 2024.

Governance

Ghana has an ESG Relevance Score (RS) of '5' for Political Stability and Rights and the Rule of Law, Institutional and Regulatory Quality and Control of Corruption.

These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in the proprietary Sovereign Rating Model.

Creditor Rights

Ghana has an ESG Relevance Score (RS) of '5' for Creditor Rights as willingness to service and repay debt is highly relevant to the rating and is a key rating driver with a high weight.

The rating on Ghana's LTFC IDR reflected Fitch's view that Ghana is in default.