Moody's downgrade: Nana Addo slams rating agencies

President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo has condemned an attempt by rating agencies to impede the progress of his government in accessing funds to develop the country.

President Nana Addo Dankwa Akufo-Addo

His reactions come after the government earlier questioned the international credit rating agency, Moody's, recent downgrade of Ghana from B3 to Caa1 with a stable outlook on the Long-Term Issuer and Senior unsecured bond ratings.

Moody's in its decision to downgrade Ghana mentioned the "increasingly difficult task government faces in addressing the intertwined liquidity and debt challenges, pandemic induced revenue underperformance, tight funding conditions on international markets, materially decreasing governance and institutional strength and inflexibilities in the government budget."

The rating agency in giving Ghana a stable outlook, however, highlighted attractive prospects over the medium term, which it said was based on balancing challenges "against the government's pre-pandemic track record of relatively effective policy delivery and maintenance of a variety of funding sources".

The credit ratings by these rating agencies, he described, have affected the cost of borrowing and access to the international capital markets.

In a Twitter post, he wrote: "President Akufo-Addo slams rating agencies.

"President @NAkufoAddo's comment comes after rating agency Moody's downgraded Ghana's Long-Term Issuer and Senior unsecured bond ratings to Caa1 from B3 and changed the outlook from negative to stable."

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