FLASHBACK: ‘Bawumia has been an unmitigated disaster’ - Kwakye Ofosu reacts to Moody’s downgrade

In October last year, the former Deputy Communications Minister, Felix Kwakye Ofosu, described the head of the Economic Management Team, Dr Mahamudu Bawumia as an unmitigated disaster.

His comment came after the international rating firm, Moody's Investors Service, downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa2 and placed the ratings on review for downgrade.

Read the full story originally published on October 4, 2022, by www.ghanaweb.com.

Former Deputy Communications Minister, Felix Kwakye Ofosu, has berated Vice President Dr. Mahamudu Bawumia over the last downgrade of Ghana’s credit ratings by Moody's.

The International rating firm, Moody's Investors Service, downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa2 from Caa1 and placed the ratings on review for downgrade.

According to Moodys, the downgrade reflects the recent macroeconomic deterioration of Ghana's economy which resulted in further heightening of the government’s liquidity, debt sustainability difficulties and posing an increased risk of debt default.

“Without external support, the government’s policy levers to arrest a worsening macroeconomic backdrop and heavier debt burden are extremely limited; the government’s small revenue base, large and increasingly absorbed by interest payments, further intensifies the policy dilemma between competing objectives, including servicing debt while meeting essential social needs,” Moody's said on its official website on September 30, 2022.

Felix Kwakye Ofosu, while reacting to the downgrade in a tweet shared on October 3, 2022, intimated that Vice President Mahamudu Bawumia as the head of Ghana’s Economic Management team is responsible for the economic meltdown.

“Moody’s downgrades Ghana again. This time to Caa2. Bawumia has been an unmitigated disaster and a complete waste of time as head of the Economic Management Team,” the tweet the former deputy minister read.

This is the second time in less than two weeks that Ghana’s credit ratings have been downgraded. The Long-Term Local-and Foreign-Currency Issuer Default Ratings (IDRs) of Ghana have downgraded by the international credit rating agency, Fitch Ratings, on September 23, 2022.

In a release posted on its website (fitchratings.com), the agency indicated that it normally does not give credit ratings below CCC.

“Fitch Ratings has downgraded Ghana's Long-Term Local- and Foreign-Currency Issuer Default Ratings (IDRs) to 'CC', from 'CCC'. Fitch typically does not assign Outlooks to issuers with a rating of 'CCC' or below,” parts of the release read.

The 'CCC' rating implies that Ghana is considered a “junk” country in terms of investment and any investor who buys a bond issued by the Government of Ghana is at a high risk of not getting his/her investment.

Moody’s downgrades Ghana again.This time to Caa2.

Bawumia has been an unmitigated disaster and a complete waste of time as head of the Economic Management Team.

— Felix Kwakye Ofosu (@FelixKwakyeOfo1) October 3, 2022