Negative credit ratings of African countries unwarranted – ARPM

Fitch Ratings Agency Ghana's credit rating downgraded to junk status

Mon, 15 Aug 2022 Source: www.ghanaweb.com

The African Peer Review Mechanism (APRM) has noted with disappointment current negative credit ratings of African countries by international credit rating agencies.

International credit rating agencies, S&P’s and Fitch Ratings downgraded Ghana’s credit status to CCC on 5th and 10th August 2022 respectively. According to analysts and market watchers, this puts the country’s financial landscape in a weak position.

In a statement released by the African Peer Review Mechanism, a group instituted with the mandate from the African Union Assembly to support African countries in the area of credit ratings on August, 12, 2022, these downgrades are “unwarranted” and contrastive to Ghana’s move to recover from the woes of the COVID-19 pandemic and the Russian-Ukraine war.

“The APRM views the unjustified negative rating actions in Africa since the beginning of 2022 as unwarranted and contrasting the continent’s economic recovery efforts from the devastating impact of the Covid-19 pandemic. This is compounding the complexity of driving the economic recovery process and making current fiscal measures ineffective,” the statement explained.

The government of Ghana has also stated that it was disappointed with the credit ratings while noting that it is implementing various policies to address the fiscal challenges the country is facing.


Source: www.ghanaweb.com
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