International ratings firm, Moody’s Investors Service has donwgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa2 from Caa1.
According to Moodys, the downgrade reflects the recent macroeconomic deterioration of Ghana’s economy which resulted in further heightening of government’s liquidity and debt sustainability difficulties and posing an increased risk of debt default
“Without external support, the government’s policy levers to arrest a worsening macroeconomic backdrop and heavier debt burden are extremely limited; the government’s small revenue base, large and increasingly absorbed by interest payments, further intensifies the policy dilemma between competing objectives, including servicing debt while meeting essential social needs,” Moodys said on October 3
