Global credit rating agency Moody has revised Ghana’s economic outlook from stable to positive a release received here on Saturday said.
The credit rating institution also affirmed the West African country’s long-term loans and bond ratings at B3.
The statement explained that Moody based its decision to revise Ghana’s economic outlook to positive on the rising confidence in the management of the economy.
“We are confident that the country’s institutions and policy settings will foster improved macroeconomic and fiscal stability over the medium term,” Moody said.
The agency added that these developments, were in part, the result of the reforms implemented under the recent International Monetary Fund (IMF) reform program, which ended last year.
Although it conceded that those reforms were beginning to bear fruit, as seen in the return to primary fiscal surpluses and smoothening out of debt maturity, the credit rating agency cautioned that pressures and risks remained, as evidenced by persistent revenue challenges.
“A key constraint on the rating is the country’s significant exposure to international capital flow reversals, which tend to coincide with exchange rate volatility and rising external and domestic borrowing costs, putting pressure on already weak debt affordability,” Moody said.
By November last year, Ghana’s total public debt had reached 208.6 billion Ghana cedis (31.16 billion US dollars), or 63 percent as a ratio of the entire economy.
The credit agency moved Ghana’s outlook from negative to stable in September 2016 after a year’s implementation of the IMF backed reforms. Enditem