Standard and Poor’s Global has confirmed Ghana’s credit ratings at “B-/B” for both long- and short-term foreign and local currency debt, keeping the country’s outlook stable. The ratings agency also maintained its “B-” transfer and convertibility assessment on Ghana.
The “B-/B” ratings place Ghana in the speculative or “junk” category. According to S&P, this signals a high risk of default and vulnerability, with economic downturns likely to affect the country’s ability to repay debts.
S&P’s latest report, published on September 25, 2025, credits Ghana’s expanding gold sector for improving the country’s external financial position. The firm also noted that Ghana’s economy has shown resilience despite the economic fallout from the war in the Middle East.
Fiscal reforms have been a factor in maintaining the rating, especially since Ghana secured a new 36-month, unfunded policy coordination instrument from the International Monetary Fund. This program supports the government’s efforts to improve fiscal discipline.
However, S&P expressed concern over the Bank of Ghana’s financial health. The central bank’s position has weakened because the government is aggressively building up foreign currency reserves through gold exports. S&P said this strategy demands significant recapitalization of the central bank.
The agency also flagged the fiscal cost of the Ghana Gold Board (GoldBod) as likely to remain high. It said it expects further reforms in managing public finances given the “still-high cost of servicing the country’s debt” and the sizable contingent liabilities from state-owned enterprises, including the central bank.
Other risks identified include potential setbacks in reform implementation and Ghana’s growing sensitivity to changes in terms of trade. This includes fluctuations in prices for gold, cocoa, and oil, which are major export commodities.
Looking ahead, S&P warned that Ghana’s ratings could be downgraded within 12 to 18 months if the government struggles to refinance maturing debt. This could happen if deficits rise due to fiscal slippage or poor performance at the Bank of Ghana and state-owned entities like GoldBod.
The agency also cautioned that a downgrade might occur if public debt or debt service costs increase beyond forecasts. A deterioration in terms of trade or export volumes could raise Ghana’s external financing needs and external debt, adding pressure on credit ratings.
S&P further warned of risks related to the ongoing debt restructuring under the G20 Common Framework. The rating could be cut if the restructuring process stalls or if creditors fail to agree on comparability-of-treatment principles and the terms offered to Ghana.
In November 2025, S&P upgraded Ghana’s sovereign credit rating from CCC+/C to B-/B. This followed nearly three years after Ghana defaulted on $13.1 billion in Eurobond payments in 2022. The upgrade reflected stronger export performance, rising foreign reserves, and improved fiscal discipline.
The affirmation of Ghana’s credit ratings by S&P comes amid a delicate balance of economic recovery and persistent financial risks. The government’s push to build reserves and implement reforms faces challenges from the cost of debt and uncertainties in global markets affecting exports.
According to Joy Online.
