S&P rates Ghana’s upcoming $3bn Eurobond 'B/Stable'

Rating agency Standards and Poor's (S&P) Global has rated Ghana’s upcoming $3 billion Eurobond ‘B/Stable’.

The rating agency holds the view that Ghana currently has the capacity to meet its financial obligation but faces major ongoing uncertainties that could impact its financial commitment on the obligation.

“S&P Global Ratings said today that it has assigned its 'B' long- and short-term foreign and local currency issue ratings to the proposed senior unsecured global medium-term note programme to be issued by Ghana (B/Stable/B),” the agency noted in a statement on its website. On Friday, 15 March 2018.

It added that the amount and interest rate, along with other details pertaining to the issuance of the Eurobond, will be determined during their placement.

The government intends to use proceeds from the notes as a stopgap measure for the weakening Ghana Cedi, which strengthened by 0.2 per cent within the week to 5.6452 per the US Dollar, the first weekly gain since 15 February 2019.

S&P had earlier maintained its 'B/B' long- and short-term foreign and local sovereign credit ratings for Ghana following pressure on public finances, with interest payments representing over 30% of government revenues.

S&P also assigned a stable outlook due to what it describes as fairly strong growth prospects.