Saturday, 17 October

Moody’s upgrades Ghana’s credit rating to B3, changes outlook to stable

Business
Moody's

Ratings agency Moody’s has upgraded Ghana’s credit rating to B3 from Caa1, while changing the country’s outlook from positive to stable.

The US-based ratings agency announced the decision in its latest report on Ghana on Friday, October 9, 2026.

Under Moody’s ratings definition, obligations rated B are considered speculative and subject to high credit risk. The rating remains within the non-investment grade category.

The upgrade reflects what Moody’s described as sustained easing of Ghana’s domestic financing conditions.

The agency said this has resulted in lower financing costs and improved debt affordability.

Moody’s also said financing costs have remained lower despite external pressures, including the conflict in the Middle East.

It attributed the improvement to continued fiscal discipline, institutional reforms and favourable export prices, which it said are supporting macroeconomic stability.

The agency said it “expects improvement to last.”

Gold prices were also identified as an important source of support for Ghana’s external accounts.

Why the outlook was changed to stable

Moody’s said the decision to change Ghana’s outlook from positive to stable is based on its expectation that macroeconomic stability and reduced government liquidity risks will be sustained.

It said favourable export dynamics would continue to support the economy.

The agency noted that a longer track record of fiscal discipline and continued progress in building external buffers could strengthen Ghana’s ability to withstand future terms-of-trade shocks.

Country ceilings

Moody’s also raised Ghana’s local currency country ceiling to Ba3 from B1 and the foreign currency country ceiling to B1 from B2.

The agency said the local currency ceiling reflects relatively predictable institutions and government actions, as well as Ghana’s track record of political stability.

These factors, it noted, are balanced against a large government footprint in the economy and financial system.

Previous rating

In April 2026, Moody’s maintained Ghana’s credit rating at Caa1 but changed the outlook from stable to positive.

At the time, the agency cited continuing credit constraints and Ghana’s high susceptibility to exchange rate and commodity price volatility, particularly in the context of the ongoing Middle East conflict.

Source: classfmonline.com