Downgrading of Ghana’s credit ratings could affect raising money from the international market. The country may have some challenges in attracting loans from the international capital market. This follows the lowering of Ghana’s credit ratings from B+ to B by the international rating agency, Standards and Poors. The agency cites the rising debt levels, large fiscal deficit and lack of clarity on oil industry laws for its downgrading. This will mean that investors could be demanding higher interest and security anytime government decides to turn to the bond market to raise funds. Financial consultant, Sydney Casely Hayford tells Joy Business the development is not encouraging for Ghana. “It will cost us a little bit of more money. The interest rate will go up. The risk will go up and it will cost us a lot more in terms of finding the adequate security to be able to raise as much as we are looking for. “All-in-all it is going to cost us a little bit more and it is better that one has a good to excellent credit ratings than have an average credit ratings which is what the B gives us,” he explained. According to him, the reasons outlined by Standard and Poor’s are justified. But an Economist with investment group, Databank financial service, Sampson Akigoh tells Joy Business the prospects are still good despite the downgrading “In terms of demand and supply we could still have a situation whereby the Central Bank could manage to get a comparative interest rate for Ghana. “…There should be some concerns but we should be able to weather the storm depending on how well we [manage the economy] or the amount of inflows directed towards Ghana, he said. Meanwhile, the finance ministry says it is already working to address some of the concerns raised by the rating agency. Source: Joy Business/Myjoyonline.com/Ghana