International rating agency, ‘Standards and Poor Global’ (‘S&P Global’) has raised Ghana`s long term local and foreign currency sovereign credit rating to B from B-, with a positive outlook.
‘S&P Global’ in a statement, said the upgrade reflected its assessment that Ghana`s monetary policy effectiveness has improved, albeit from a low base, and will support the credibility of the inflation targeting framework over the period.
The agency, also revised its transfer and convertibility T&C assessment to B+ from B, citing the improving banking sector stability and lower inflation as factors that supported its view.
It explained that the agency was convinced that the effectiveness and transmission mechanism of the country`s monetary policy has improved, hence the decision to revise the T&C from B to B+.
It however, said the ratings remained constrained by weak public finances from both a stock and flow perspective, sizable contingent liabilities, the country`s low gross domestic product GDP per capital, and high external debt levels.