RADP / Pulse Ghana > news > business

Fitch maintains Ghana's credit ratings at 'B'

March 28, 2016 4:26 PM

Fitch also affirmed the issue ratings on Ghana's senior unsecured foreign and local currency bonds at 'B', as well as the 'BB-' rating on Ghana's USD1bn partially guaranteed note.

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Fitch has maintained Ghanas crediting ratings at B with negative outlook.

The ratings were fuelled by Ghana's fiscal and external deficits which Fitch says leaves "the country vulnerable to domestic and external shocks, including low oil prices and tight financing conditions."

"Fiscal slippage ahead of the November elections would increase inflationary and financing pressures," the rating agency said. "A further decline in commodity prices would negatively impact growth and exacerbate Ghana's twin deficits."

The agency expects the cedi to trade at an average exchange rate of 4.1/USD; this would be a depreciation of about 8% from the 2015 average compared with the 22% depreciation that the cedi experienced in the previous year.

FITCH said that any further drop in commodity prices could seriously affect the economy in the coming months.

The Agency however noted that growth could pick up this year if the commodity prices as well as crude oil production, from TEN and jubilee oil fields improve in the coming months.

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