Fitch downgrades economy over debt concerns

Finance Minister, Ken Ofori-Atta.

Source: Graphic Online

An international ratings agency, Fitch, has downgraded the country’s long-term default rating to B negative over concerns that the economy faced increased risks in servicing its debts in the medium to long-term.

The agency cut the country’s long-term foreign-currency issuer default rating (IDR) to ‘B’ negative from ‘B’ with a negative outlook last week.

It blamed the development on the country’s loss of access to international capital markets in the second half of last year, which meant that it will not be able to borrow from the International financial market this year.

Fitch says Ghana’s effective loss of market access to international bond markets increases risks to its ability to meet medium-term financing needs. It however said in a statement that the country will be able to meet its external debt service without relying on new borrowings in the international capital market.

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