S&P affirms Ghana’s “B-/B” credit ratings with stable outlook

Standard and Poor's (S&P) Global has affirmed Ghana’s credit ratings at “B-/B” on the country’s Long- and Short-Term Foreign currency as well as the Local currency.  

The ratings agency also reviewed the country’s credit outlook to stable.

“We also affirmed our 'B-' transfer and convertibility assessment on Ghana”, it added.

According to the US-based firm, the credit rating of 'B-/B' means an issuer or obligation is in the non-investment grade (speculative or "junk") category, indicating high credit risk, high vulnerability to default, and that bad economic times will likely impair the ability to pay back debts.

Reasons

According to its country report on Ghana released on September 25 2025, the rating was due to how the expansion of gold sector is benefiting Ghana’s external metrics, while the economy is proving to be relatively resilient to the economic effects of the war in the Middle East.

It also factored in the on-going fiscal reforms to progress, highlighting that the policy is being anchored by a new 36-month, unfunded policy coordination instrument from the International Monetary Fund.

Weakened BoG’s financial position

S&P, was, however, worried about the central bank's financial position that been weakened by the government's focus on rapidly accumulating foreign currency reserves via gold exports, which it said requires significant recapitalization.

It again stated that the fiscal costs of the Ghana Gold Board (GoldBod) are likely to remain elevated.

It added that “they are looking forward to further reforms to the management of public finances against the still-high cost of servicing the country's debt, sizable contingent liabilities from state-owned entities (SOEs) and the central bank, reform implementation risks, and Ghana's rising sensitivity to terms of trade (for example, the price of gold, cocoa, and oil)”.

Ghana’s ratings in 12 to 18 months

The ratings agency, however, warned it could lower Ghana’s ratings  over the next 12-18 months “if the government's ability to refinance maturing debt as it comes due was strained by:

• Rising deficits due to fiscal slippage or worsening performance at the Bank of Ghana or SOEs such as GoldBod; or
• Materially higher-than-forecast public debt or debt service costs.

“We could also downgrade Ghana if terms of trade or export volumes deteriorate, causing Ghana's external financing needs and its external indebtedness to increase”.

“Although this is not part of our base case, we could also lower the rating if the debt restructuring process were to stall”, it warned

“This could occur if Ghana's creditors disagree on comparability-of-treatment principles and the terms they receive under the G20 Common Framework restructuring process”, it added.

Background

In November 2025, S&P upgraded Ghana’s sovereign credit rating from CCC+/C to B-/B, citing stronger export performance, rising foreign reserves, and improved fiscal discipline nearly three years after the country defaulted on its international debt.

The upgrade that was done on  November 7, 2025, marked  a major step in Ghana’s recovery from the 2022 debt crisis that forced a suspension of Eurobond payments worth US$13.1 billion.

This could occur if Ghana's creditors disagree on comparability-of-treatment principles and the terms they receive under the G20 Common Framework restructuring process”, it added.

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