Ghana was downgraded to B- from B by Fitch reflecting its loss of access to capital markets in H2 2021, following a rise in government debt due to the pandemic. Fitch said that the lack of capital market access puts into question its ability to meet medium-term financing needs even as it has sufficient liquidity and other available external financing options. “Ghana’s international reserve position has become highly reliant on annual Eurobond issuance”, Fitch added. Ghana has $2.7bn (3.3% of GDP) in sovereign external interest and amortization payments in 2022, with $7.9bn in reserves, sufficient to meet its payments. The rating agency expects Ghana’s fiscal cash deficit to narrow to 9.1% of GDP in 2022 from 15.1% in 2020 and 12.5% in 2021.

Ghana’s dollar bonds were slightly lower with its 8.875% 2042s down 0.8 points to 73.06, yielding 12.6%.

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