Ghana was downgraded to SD from CC after it suspended commercial interest and principal payments on its offshore bonds, commercial loans and most bilateral obligations. The nation’s planned debt restructuring could be characterized as distressed debt exchanges, possibly entailing maturity extension or a reduction in the face value of debt. Fitch also noted it would lower Ghana’s rating to D if the government fails to make the next scheduled coupon payment on 18 January, 2023. The rating agency added that low net reserves, volatile exchange rate, high inflation, and a weak economy further add to its low credit rating.
Ghana’s dollar bonds were trading lower with its 8.125% 2026s down 2.4 points to 37.43 cents on the dollar.