As a result of Ghana’s few commercial financing choices and restrictive external and fiscal buffers, S&P gave the nation a negative outlook.
According to a MarketWatch analysis, Ghana’s fiscal and external imbalances have gotten worse as a result of the COVID-19 outbreak and the crisis in Russia.
It claimed that a number of variables, including nonresident withdrawals from domestic government bond markets, dividend payments to overseas investors, and increasing prices for refined petroleum products, had increased demand for foreign currency.
According to the agency, Ghana has also been impacted by a lack of access to the markets for Eurobonds.
Although the situation is still difficult and the fiscal deficit has exceeded the government’s aggressive objective throughout the first half of 2022, these changes may enhance tax revenue going forward. S&P added.
Ghana’s ratings were also upheld by S&P in February, despite Moody’s downgrading the African country to Caa1 with a stable outlook.