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Fitch Ratings, the credit rating agency, has lowered Ghana’s from ‘CCC’ to RD because of missed payments on local-currency bonds issued before the domestic debt exchange program (DDEP). Two-year notes maturing in 2023 and a 20-year note growing in 2039 have only received coupon payments, while the principal amount on the former note remains unpaid. Ineligible entities were not eligible for participation in the debt exchange because of defaults on bonds. The government has announced its intention to resume payments on local-currency bonds issued before the debt exchange.
Fitch complained that missed payments would be settled for all bondholders or only for specific categories. As a result, Fitch has downgraded the issue rating of five local-currency bonds issued before the debt exchange to ‘CC’ from ‘CCC’ and has withdrawn the rating on these securities because of limited information and uncertainty regarding the timely servicing of the securities issued before the domestic debt exchange.
Fitch also expects financing assurances required for IMF Board approval of the ECF arrangement and publication of a new debt sustainability analysis will be provided at the end of the second quarter of 2023.
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Source: Omanghana.com
