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Ratings agency Standard and Poor's has downgraded Ghana's credit
ratings from B to B minus.
This means that Ghana's ability to pay its debts on time and has been
lowered even further. The downgrade of government's credit worthiness
was revealed in the Agency's latest assessment of the Ghanaian
economy.
The latest report says Ghana's finances may not improve anytime soon,
even if it gets support from lenders like the International Monetary
Fund (IMF).
According to Standard and Poors' the downgrade "reflects inherit risks
in financing Ghana's wide fiscal and current account deficits".
The agency adds that it sees Ghana's finances as very weak, because of
the rising wage bill and that government may have problems
implementing proposals by the IMF to help stabilize the economy.
Standard and Poor's puts Ghana's Net International Reserves at 1.2
billion dollars, whilst it projects that the country's reserves would
continue to weaken, putting pressure on the Ghana cedi, unless
government is able to secure funding from IMF and other
Multi-nationals from early next year.
The agency also revised Ghana's credit outlook from negative to
stable; but says it would further downgrade Ghana if the country's
reserves worsen in the coming years.
Myjoyonline
