Businesses that require foreign investments and financing may be at the receiving end of Ghana’s economic downgrade by Fitch, and Standard & Poor’s (S&P).
This is according to the President of the Association of Ghana Industries (AGI).
Dr Humphrey Ayim-Darke, speaking on JoyNews’ Newsfile, said bulk importers of goods and the private sector will be largely hit by the latest rating which put the country’s creditworthiness into junk status.
This, in his view, means that the citizens will ultimately bear the brunt.
“Most bulk imports that get assistance or FDIs for imports. For instance, fertilizer, petroleum products, etc. Most of these enterprises depend on their international partners so if you are that exposed, [even] if you get a good transaction, your pricing will change in terms of your risks.
“Because the ability of the enterprise to dispose of the goods and get the dollars and repatriate to the funding agencies are all within the context of the country’s risk and it is therefore very critical to an entity that is doing big business that ones the country has been downgraded, this implication apply,” he said.
This week, Ghana’s rating was downgraded by Fitch from B- to CCC, putting the country’s creditworthiness into junk status.
This update follows Standard and Poor’s (S&P) downgrade of Ghana’s foreign and local credit ratings from B-B’ to CCC+C with a negative economic outlook.
On the same show, a political analyst, Dr Theo Acheampong believed that the recent rating reflects the state of the economy.
“This recent downgrade by Fitch and S&P is the lowest we have had for the last 20 years since they started rating us. Historically, we have been in the B category and now we’ve shifted one level below which is a C almost near to a D category,” he noted.
- Loans to become more expensive as BoG hikes policy rate to 24.5%
- Nigerian singer Teni gifts SHS teacher a car
- Brother stands in as groom skips wedding to train
- ‘Forget about votes; call Chairman Wontumi to account’ – Martin Kpebu to Akufo-Addo
- Government using IMF as smokescreen to force its ‘austerity budget’ on Ghanaians – Martin Amidu
- Daniel Afriyie Barnieh to run down Hearts contract as he rejects new deal
- Akufo-Addo’s fight against illegal mining is a complete ‘419’ – Sammy Gyamfi
- Parliament warns Herald Editor to cease exposés on controversial GNPC/Genser Energy contract
- WHO alert over India-made cough syrups after deaths in The Gambia
- Ghana’s debt stock up ¢9bn to ¢402.4bn in July 2022 – BoG
- Exhibit customer-centric services in your daily operations – British Council to organisations
- Government consciously shielding main culprit in Bulgarian Embassy demolition – Ablakwa
- ‘I’m fed up’ – aspiring NDC chairman backs calls to oust incumbent Ofosu Ampofo, Asiedu Nketia
- One dead in Tetegu floods
- #BigBrotherNaija records over 19m tweets by fans￼
- Uganda president apologises for son’s tweets on invading Kenya
- Illegal mining very endemic in Bosome Freho district – Lands Ministry
- US to begin screening travellers coming from Uganda for Ebola
- British officials released date for King Charles III’s coronation
- Black Sherif didn’t lose BET, his nomination is a win – Reggie Rockstone
- World Bank’s assessment is a true reflection of economic reality in Ghana – Prof. Lord Mensah
- Anny Osabutey: Ghana, a land of ‘beautyful’ nonsense!
- Kenyan socialite removes butt implants after life-threatening health scare
- Power Energy Ghana Exhibition slated for November 14, 2022
- Ghana’s gross reserves fall to 2.9 months of import cover in September 2022