NPP led Ghana makes gains, as Moody’s upgrades Ghana credit rating outlook to positive.In June 2014, under Mahama, Moody’s downgraded Ghana’s credit rating to B2 with negative outlook. It got worse a year later in March 2015, still under Mahama, we went further down to B3 with a negative outlook.
As a result, borrowing became more expensive and Ghana had to get guarantees from the World Bank to even go to the international bond market. It was the same year we ran to the IMF for a bailout. Since 2017, the recovery has been on andthe necessary platform for protecting businesses and creating jobs has been strengthened.
In September 2018, for example, the other credit rating agency, Standard and Poor’s, for the first time in almost a decade, upgraded Ghana from B- to B+.
Once again, for the second time in a decade, Moody’s has just this morning upgraded Ghana from a stable outlook to positive. It means that the world is watching and seeing the progress that is being made under Akufo-Addo.
Credit must go to the entire nation. We must keep faith in ourselves and in our current leadership.
Sovereign credit ratings are a key evaluation principle for a country’s economic and political environment.
It gives investors insight into the level of risk associated with investing in a particular country. Today, as Nigeria’s outlook goes negative from stable, ours is going positive from stable.
It helps our drive for more foreign direct investment. We are currently the biggest recipient of FDI in West Africa.
In sourcing for cheaper funds on the international capital market, with Ghana going for another Eurobond early next month, our positive rating should make the yield on our bonds even better for Ghana than in previous years.
Remember that Akufo-Addo sovereign bonds are cheaper than Mahama’s, and; it shows our assured greater commitment under NPP to economic development.
Moody’s upgrades Ghana credit rating outlook to positive due to efforts made by the government which has led to an improvement in achieving stability and growth over the last three years.