S&P Global Ratings has upgraded Ghana’s sovereign credit rating from CCC+/C to B-/B, marking a significant milestone in the country’s recovery nearly three years after defaulting on its international debt in 2022.
The upgrade, announced on November 7, 2025, reflects the agency’s renewed confidence in Ghana’s economic trajectory.
Key Drivers of the Upgrade:
The agency cited several factors for the two-notch upgrade, including:
- Surging Reserves: Foreign currency reserves have soared to nearly $11 billion (or ~9% of GDP) as of late 2025, up from $6.8 billion at the end of 2024.
- Strong Exports: Higher volumes and favourable prices for gold and cocoa—which account for over 60% of goods exports—have bolstered the Cedi, which has appreciated by about 30% against the US dollar this year.
- Fiscal Reforms: The new administration has introduced structural reforms, including a legal requirement for a primary surplus of 1.5% of GDP annually and a long-term plan to reduce public debt to 45% of GDP by 2034.
Impact of the Upgrade:
The upgrade to B-/B with a stable outlook signals to the international community that Ghana has substantially reduced its near-term risk of default. This improvement is crucial as it:
- Boosts Investor Confidence: It makes Ghanaian assets, particularly new Eurobonds post-restructuring, more attractive to global investors.
- Lowers Borrowing Costs: It typically translates to a lower risk premium, which should, in the medium term, reduce the cost of future external borrowing for the government and domestic private sector.
- Validates IMF Programme: It serves as a major endorsement of the government’s fiscal consolidation efforts under the $3 billion IMF Extended Credit Facility program, which runs until May 31, 2026.
Despite the positive momentum—with the economy growing 6.3% in the first half of 2025—S&P noted lingering risks, including high debt-service costs (projected at 20% of revenue through 2028) and the outstanding finalisation of $5 billion in remaining debt restructuring with commercial and official creditors.