The Republic of Ghana’s credit rating has received an upgrade by Fitch from RD to CCC, with the issue ratings on domestically issued local-currency bonds that have not yet matured being upgraded to CCC from D.
Economist and Professor, Lord Mensah, believes that the government should reduce spending and restructure its debt to improve the country’s outlook further.
According to him If the government listens and tries to cut spending as much as possible, the rate we’re at will probably improve. He also added there is always room for advancement and that let’s see what happens when our external debts are restructured in the coming weeks and we get the IMF program, which could improve our ratings even more.
However, Fitch does not typically assign outlooks to sovereigns with a rating of CCC+ or below. The upgrade follows the completion of the domestic debt exchange program by the Republic of Ghana.
Despite the upgrade, Member of Parliament for Bolgatanga Central, Isaac Adongo, discredits Fitch’s upgrade, stating that the government has postponed the problem of default by denying poor people and pensioners their monies through the domestic debt exchange program.
