Professor of economics at the Institute of Statistical, Social and Economic Research, Peter Quartey has cast doubt on the recent Standard & Poor's (S&P) rating affecting investor confidence.
According to him, in the face of COVID-19 investors will be discerning about the latest ranking from international ratings agency, Standard and Poor’s which saw Ghana’s credit rating move from B to a B negative.
The Finance Ministry has already described the country’s rating as unfortunate.
A press statement by the ministry said that while it recognised that the downgrade was widespread — affecting other countries worldwide — it found it disturbing that ratings agencies would choose that path at a time when countries, including Ghana, are battling an unprecedented crisis.
Speaking on the impact of the rating on investor confidence, Professor Peter Quartey said the downgrade of the country’s rating should be interpreted in the context of the COVID-19 pandemic.
“The agency is doing its job by rating. However, the timing is not too good, but I believe well-meaning people out there, investors and the like will look at this rating and understand it within the context of the pandemic that yes we have been downgraded but within the context of the pandemic.
Nobody expected an upgrade so it is not surprising, but it is something that we were all expecting, except that I believe investors who will see this data will be discerning. We are not in normal times and it was not just Ghana but several other countries that were downgraded because of the effects of the pandemic,” he told Citi News.