Ghana downgraded to a 'borla' status - Mahama mocks Akufo-Addo government

Flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, has poured scorn on the recent downgrades of the local economy and currency by credit rating agencies.

He opined that Ghana's economy which has been declared in a junk status was nothing to write home about.

According to him, defaulting on the payment of the country's high debt was the first to be recorded in 50 years.

"For the first time in over 50 years, we have defaulted in payment of our debt and we've been downgraded, by credit ratings agencies, to the lowest level ever experienced. Junk, in other words, 'borla' status," John Dramani Mahama said.

Stating this during his Building Ghana Tour in Accra on Tuesday, November 7, 2023, the former president accused President Nana Addo Danwka Akufo-Addo of running out of ideas to save the economy from wobbling further.

He asserted that the escalating cost of living driven by hyperinflation, depreciating local currency and rising prices of essential items were evidence that President Akufo-Addo had run out of ideas to salvage the economic crisis faced by Ghanaians.

Meanwhile, Fitch upgraded Ghana's long-term local currency Issuer Default Rating (IDR) from Restrictive Default (RD) to CCC.

It said this follows the completion of the Domestic Debt Exchange Programme (DDEP).

Fitch stated that Ghana has normalised relations with a significant majority of local currency creditors, with a participation rate of 92% on local-currency government bonds [with similar participation for Cocobills and locally issued foreign-currency bonds] as a result of a series of domestic debt exchanges.

It also declared the country's long-term foreign IDR at Restrictive Default and the country ceiling at B-.

The rating agency "has assigned ‘CCC’ ratings to two interest-only bonds issued on completion of pension funds holdings of the domestic debt exchange."

"Fitch has also assigned ‘CCC’ ratings to four domestic US dollar-denominated bonds issued on 4 September 2023," it added.

SA/NOQ

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