Ratings agency, Moody’s, is warning of some challenging times for President Nana Akufo-Addo’s government, come next year.
In its post-Election report, Moody’s noted that some challenges still remain in the Ghanaian economy despite the win.
These included key challenges constraining Ghana’s creditworthiness, including low growth after the coronavirus shock as well as imbalances in the fiscal economy. The rest are weak government revenues, low oil prices, and energy sector contingent liability risks.
Moody’s further added in the report that a weakened mandate resulting from a diminished parliamentary majority will further complicate fiscal and economic reform prospects.
Moody’s downgraded economic outlook in April but affirmed long-term issuer
Moody’s in April, 2020 downgraded Ghana’s economic outlook to negative from positive.
It however affirmed the country’s long-term local and foreign currency issuer and foreign currency senior unsecured bond ratings at B3.
The downgrade of the Ghanaian economy is purely due to the COVID-19 pandemic which has affected tax revenue and the economy as a whole. Moody’s had changed Ghana’s sovereign ratings from stable to positive only in January this year.
Moody’s also concurrently affirmed the local and foreign currency senior unsecured MTN ratings at (P) B3 and the rating of the bond enhanced by a partial guarantee from the International Development Association (IDA, Aaa stable) at B1.