{"id":1268636,"date":"2022-12-21T19:51:45","date_gmt":"2022-12-21T19:51:45","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/12\/21\/sp-cuts-ghanas-sovereign-rating-to-selective-default\/"},"modified":"2022-12-21T19:51:45","modified_gmt":"2022-12-21T19:51:45","slug":"sp-cuts-ghanas-sovereign-rating-to-selective-default","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/12\/21\/sp-cuts-ghanas-sovereign-rating-to-selective-default\/","title":{"rendered":"S&#038;P cuts Ghana&#8217;s sovereign rating to &#8216;selective default&#8217;"},"content":{"rendered":"<p><\/p>\n<div>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-0\">Global Ratings agency S&#038;P has lowered the sovereign rating of Ghana to \u2018selective default\u2019 from CC, a day after the country announced it would suspend its external debt payments.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-1\">S&#038;P Ratings said it views the moratorium as a \u2018selective default\u2019 and did not issue any outlook.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-2\">\u201cWe expect to lower our ratings on Ghana\u2019s foreign currency issues to \u2018D\u2019 (default) if the government fails to make the next scheduled coupon payment on its commercial foreign currency debt,\u201d the rating agency said.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-0\">Ghana on Monday suspended payments on most of its external debt, effectively defaulting as the country struggles to plug its cavernous balance of payments deficit.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-1\">The Finance Minister, Ken Ofori-Atta, said\u00a0 Ghana will not service debts including its Eurobonds, commercial loans and most bilateral loans, calling the decision an \u201cinterim emergency measure\u201d, while some bondholders criticised a lack of clarity in the decision.<\/p>\n<p data-testid=\"paragraph-1\">The government \u201cstands ready to engage in discussions with all of its external creditors to make Ghana\u2019s debt sustainable\u201d, the finance ministry said.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-3\">The suspension of debt payments reflects the parlous state of the economy, which led the government last week to reach a $3-billion staff-level agreement with the International Monetary Fund (IMF).<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-4\">Ghana had already announced a domestic debt exchange programme and said that an external restructuring was being negotiated with creditors.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-4\">The IMF has said a comprehensive debt restructuring is a condition of its support.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-5\">The country has been struggling to refinance its debt since the start of the year after downgrades by multiple credit rating agencies on concerns it would not be able to issue new Eurobonds.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Global Ratings agency S&#038;P has lowered the sovereign rating of Ghana to \u2018selective default\u2019 from CC, a day after the country announced it would suspend its external debt payments. S&#038;P Ratings said it views the moratorium as a \u2018selective default\u2019 and did not issue any outlook. \u201cWe expect to lower our ratings on Ghana\u2019s foreign [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1268637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[],"class_list":["post-1268636","post","type-post","status-publish","format-standard","has-post-thumbnail","category-politics"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1268636","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=1268636"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1268636\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1268636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1268636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1268636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}