Moody’s Ratings raised Ghana’s sovereign credit rating, citing improved prospects for debt reduction.

The West African nation’s long-term foreign currency debt was upgraded to Caa1 from Caa2, the ratings agency said on Friday. The outlook was changed to stable from positive.

“Greater macroeconomic stability and favourable external dynamics are supporting more controlled funding costs and foreign exchange reserve replenishment,” Moody’s said. The agency cited budgetary previous budget overruns, but noted that “nascent improvements to the fiscal framework will help anchor fiscal adjustment.”

Ghana’s new leadership under President John Mahama has pursued fiscal consolidation since coming to power in January to stabilise an economy recovering from a debt restructuring.

That’s helped to reduce public debt to 629 billion cedis ($51.6 billion) or 44.9% of gross domestic product at the end of July, from 764 billion cedis or 64.9% of GDP a year earlier.

Supported by a surge in bullion prices, Africa’s top gold producer also grew its gross international reserves by 43% to $10.7 billion at the end of August, bolstering its ability to meet external payments.