Fitch gives Ghana B rating ahead of $1bn Eurobond

quist 09:43 - 02 August 2016

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The Finance Minister, Seth Terkper and a group of experts from the Bank of Ghana are currently on a roadshow to meet investors across Europe in order to whip up interest in, what would be, Ghana’s fifth Eurobond attempt in four years.

International Ratings Agency Fitch has given Ghana a B credit rating ahead of the country’s next Eurobond issue slated for September, 2016.

Government had to ditch its last Eurobond issue of $750 million in February 2016, describing it as ill-timed.

Meanwhile, Fitch’s B rating is the same as its assessment in 2015 ahead of the $1.5 billion Eurobond.

While the rating represents stability for some financial experts, others also think it shows no progress made in restoring the country’s debt and financial status.

It is currently unclear how the B rating would affect the interest rate government would get on the bond, but a similar rating in last year’s bond issue saw government pay an interest of 10.75%. This was higher than the threshold anticipated.

The latest 1 billion Eurobond issue would be used to retire maturing debt, support the budget and provide infrastructure development, according to Finance Minister, Seth Terkper.