{"id":1216655,"date":"2022-10-05T15:39:55","date_gmt":"2022-10-05T15:39:55","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/10\/05\/moodys-downgrades-ghana-again\/"},"modified":"2022-10-05T15:39:55","modified_gmt":"2022-10-05T15:39:55","slug":"moodys-downgrades-ghana-again","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/10\/05\/moodys-downgrades-ghana-again\/","title":{"rendered":"Moody\u2019s Downgrades Ghana Again &#8211;"},"content":{"rendered":"<p><\/p>\n<div>\n<p>\u00a0<\/p>\n<p><b>Ken Ofori-Atta, Finance Minister<\/b><\/p>\n<p>RATING AGENCY Moody\u2019s has once again downgraded Ghana\u2019s long-term issuer and senior unsecured debt ratings from CAA1 to\u00a0CAA2, asserting that the new downgrade reflects the recent macroeconomic deterioration.<\/p>\n<p>According to the agency, the deterioration has further heightened the government\u2019s liquidity and debt sustainability difficulties and increased the risk of default.<\/p>\n<p>The downgrade is coming on the wheels of the expansion of the economy by 4.8% in the three months through June, sustained by manufacturing and cocoa production.<\/p>\n<p>Moody\u2019s said inflation continues to rise on high levels, while the Cedi is under significant pressure, with a combination of \u201ca sharp rise in interest rates, high inflation and a rapidly weakening currency exacerbate the government\u2019s debt challenges.\u201d<\/p>\n<p>\u201cWithout external support, the government\u2019s policy levers to arrest a worsening macroeconomic backdrop and heavier debt burden are extremely limited,\u201d the rating agency noted and added that the government\u2019s small revenue base is largely and increasingly absorbed by interest payments.<\/p>\n<p>It said this had intensified the policy dilemma between competing objectives, including servicing debt while meeting essential social needs, adding, \u201cAs a result, the risk of an eventual default has increased.\u201d<\/p>\n<p><!-- AI CONTENT END 2 -->\n\t<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Ken Ofori-Atta, Finance Minister RATING AGENCY Moody\u2019s has once again downgraded Ghana\u2019s long-term issuer and senior unsecured debt ratings from CAA1 to\u00a0CAA2, asserting that the new downgrade reflects the recent macroeconomic deterioration. According to the agency, the deterioration has further heightened the government\u2019s liquidity and debt sustainability difficulties and increased the risk of default. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1216656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[4336,85,4428],"class_list":["post-1216655","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-downgrades","tag-ghana","tag-moodys"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1216655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1216655"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1216655\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1216655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1216655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1216655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}