Ghana has received a significant boost to its economic recovery efforts, as S&P Global Ratings upgraded the country’s foreign currency issuer credit rating from ‘SD’ (Selective Default) to ‘CCC+’.
This move reflects growing confidence in the West African nation’s financial stability amid ongoing debt restructuring efforts and improved macroeconomic conditions.
The upgrade, announced in S&P’s May 9, 2025 assessment, follows the successful completion of key phases in Ghana’s domestic debt exchange program and ongoing negotiations with external creditors. The rating agency affirmed its ‘CCC+’ issue ratings on Ghana’s debt, as well as its ‘CCC+/C’ long- and short-term local currency ratings, maintaining a stable outlook for both.
Crucially, the decision comes on the back of stronger external indicators, including a sharp rise in gold export earnings and a gradual rebuilding of foreign exchange reserves. These positive trends have helped bolster Ghana’s external liquidity and improve its capacity to meet near-term debt obligations.
The restructured debt landscape, marked by the successful Eurobond exchange in October 2024 and the signing of a memorandum of understanding with bilateral creditors on January 29, 2025, has provided the foundation for this upgrade. These milestones are seen as critical steps toward restoring investor confidence and enhancing the country’s creditworthiness.
However, S&P cautioned that Ghana’s credit rating could face renewed downward pressure over the next 12 to 18 months if fiscal performance weakens or financing conditions tighten. Such challenges could increase debt servicing costs and constrain the government’s ability to refinance upcoming debt maturities, posing risks to fiscal and external stability.
Despite these risks, Finance Minister Dr. Cassiel Ato Forson remains optimistic. He credits the improved outlook to prudent economic management, targeted fiscal planning, and robust policy actions aimed at stabilizing the economy. Notably, inflation has declined to 21.2%, its lowest in eight months, while the Ghanaian cedi has shown resilience, trading around GH¢14 against the dollar, down from a peak of GH¢17 in 2023.
As Ghana continues its path toward economic recovery, the recent credit rating upgrade marks a critical milestone, reflecting growing confidence in the country’s capacity to overcome its fiscal challenges and restore long-term stability.
