Raging agency Moody’s downgraded Ghana from B3 to CAA1 on Friday, citing the “increasingly difficult task government faces in addressing the intertwined liquidity and debt challenges.”
Ghana’s second downgrade in three weeks, after Fitch Ratingsadjusted Ghana from B to B- last month, citing concerns for its ability to issue bonds in 2022, sent its dollar bonds tumbling. “We are gravely concerned about what appears to be an institutionalized bias against African economies in this aspect… with little regard for the adverse impact on the cost and access of financing for African Sovereigns,” Ghana’s finance ministry said in a statement dated Sunday and posted on its website on Monday.
In hopes of rallying investors and stabilizing bond yields, Ghana last month said it would cap expenditure at 80% of what was approved for the 2022 budget until the deficit outlook improves.
Until Africa get its own rating agency we will remain in the mercy of European Ratimg Agencies - I believe BRICS was busy with this exercise. AU must start debating serious economic emancipation issues
Very very true