Government paid for Moody’s recent B3 rating of Ghana – Adongo

Member of Parliament for Bolgatanga Central, Isaac Adongo claims Moody’s recent affirmation of the Government of Ghana’s long-term issuer and senior unsecured bond ratings at B3 and changed the outlook to positive from stable was a procured service.

Moody’s has concurrently affirmed the rating of the bond enhanced by a partial guarantee from the International Development Association (IDA, Aaa stable) at B1.

According to Moody’s the decision to assign a positive outlook reflects Moody’s rising confidence that the country’s institutions and policy settings will foster improved macroeconomic and fiscal stability over the medium term, in part as a consequence of the reforms implemented under the recent IMF reform program. Those reforms are beginning to bear fruit, as seen for example in the return to primary fiscal surpluses, measures to smoothen the debt maturity profile and increasingly sustainable growth prospects.

But speaking on Good Evening Ghana show on Metro TV, Isaac Adongo who’s a member of the Finance Committee of Parliament stated that Moody’s is a discredited institution on which the Akufo Addo led-government is relying for credibility.”

“Let’s understand that Moody’s did was not informed by their normal ratings of a country, it was a procured service by the Government of Ghana. This particular exercise was by Moody’s Investor Service. Investor Service of Moody’s is a paid activity procured by the person who is interested in the service."

"The Government of Ghana after having started the process to issue $3billion of Eurobonds and having challenges with due diligence questions from investors fails to answer the questions but then goes to procure the services of Moody’s to provide answers that will sway investors."

"That is different from Moody’s just like Fitch, Standard and Poor’s doing their normal rating of a country. And you don’t expect the Government of Ghana to procure a negative report. The government of Ghana will not go and give Moody’s money for a negative report.”