In a significant development, Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ from ‘Restricted Default’ (RD). This upgrade comes ten months after Fitch downgraded Ghana’s ratings to RD in August 2024.
According to Fitch, the upgrade reflects Ghana’s normalized relations with a significant majority of external commercial creditors. The country’s successful restructuring of its USD 13.1 billion Eurobonds in October 2024 has been a major factor in this upgrade. However, Fitch notes that about USD 2.6 billion of non-performing external debt still needs to be restructured.
*Progress in Debt Restructuring*
Fitch acknowledges that Ghana’s debt restructuring is near completion. The country ratified the memorandum of understanding on the restructuring of its bilateral official debt in January 2025, covering USD 5.1 billion. Of the remaining USD 2.6 billion of external debt that needs to be restructured, USD 1 billion is due to supranational entities, and USD 840 million is due to creditors considered official.
Fitch expects Ghana to fully complete its external debt restructuring by the end of 2025. This development is expected to improve the country’s creditworthiness and enhance its economic stability.
Inflation Projections
Fitch also projects a decline in inflation, forecasting it to average 15% in 2025 and 10% in 2026, down from 23% in 2024. This decline is attributed to the large cedi appreciation since April 2025, a tight monetary policy stance, and fiscal consolidation.
The upgrade by Fitch Ratings is a positive development for Ghana’s economy, reflecting the country’s efforts to restore economic stability and improve its creditworthiness.