Fitch Ratings cut Ghana’s longterm sovereign credit rating further into junk days after a similar decision by S&P Global Ratings.
Fitch downgraded Ghana by two notches to CCC, or eight levels below investment grade. The ratings company had lowered Ghana to B- in January, with a negative outlook.
The Fitch downgrade follows S&P’s decision last week to cut Ghana’s rating by one notch to CCC+.
Moody’s Investors Service also lowered Ghana’s longterm debt one step deeper into junk territory to Caa1 on 4th February 2022.
Meanwhile, inflation in Ghana accelerated at a faster pace than expected in July as a slump in the value of the cedi raised the cost of imported goods like cooking oil and gasoline.
The annual inflation rate climbed to 31.7% from 29.8% a month prior. That’s the fastest pace since November 2003 and marks the 11th consecutive month the rate has exceeded the top of the central bank’s target band of 6% to 10%.