{"id":24520,"date":"2024-08-05T16:50:40","date_gmt":"2024-08-05T16:50:40","guid":{"rendered":"https:\/\/sotnews.agency\/?p=24520"},"modified":"2024-08-05T19:44:33","modified_gmt":"2024-08-05T19:44:33","slug":"fitch-confirms-ghanas-rd-rating-amid-ongoing-debt-challenges","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=24520","title":{"rendered":"Fitch confirms Ghana\u2019s \u2018RD\u2019 Rating amid ongoing debt challenges"},"content":{"rendered":"
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The rating agency, Fitch, has affirmed Ghana\u2019s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at \u2018RD\u2019 and Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) at \u2018CCC\u2019.<\/p>\n

Ordinarily, the UK-based firm does not assign Outlooks to sovereigns with a rating of \u2018CCC+\u2019 or below.<\/p>\n

The affirmation of the LTFC IDR at \u2018RD\u2019 indicates that Ghana is still defaulting on its outstanding Eurobonds following the expiration of the grace period for a missed coupon payment in February 2023.<\/p>\n

The rating agency, however, noted that Ghana has since made headway in its Common Framework restructuring process.<\/p>\n

\u201cAn agreement on the main terms of the official bilateral debt treatment with the official creditor committee was reached in January 2024, and the memorandum of understanding that formalizes these terms, as well as non-financial terms, was finalized in June 2024,\u201d it stated.<\/p>\n

External debt restructuring to be completed by end-year<\/p>\n

In June 2024, Ghana and representatives of bondholders who own or control approximately 40% of the outstanding US$3 billion Eurobonds, reached an agreement in principle (AIP) on the terms of the Eurobonds restructuring.<\/p>\n

This AIP met both the International Monetary Fund\u2019s (IMF\u2019s) debt sustainability thresholds and the Common Framework\u2019s comparability of treatment clause.<\/p>\n

An AIP was previously reached in January 2024 but subsequently rejected by the IMF as it did not comply with its debt sustainability thresholds.<\/p>\n

\u201cWe expect the consent solicitation to be launched imminently, and the Eurobond exchange to be settled by September 2024, although there could still be some delays due to ongoing negotiations on the restructuring terms of the International Development Association (IDA)-partially guaranteed bond.<\/p>\n

\u201cGhana\u2019s FC non-bond commercial debt would still need to be restructured on comparable terms. We expect completion of the external debt restructuring by end-2024,\u201d it explained.<\/p>\n

In exchange for the 15 outstanding Eurobonds, investors will be offered a set of new bonds, with two options.<\/p>\n

Under the \u2018disco\u2019 option, a nominal haircut of 37% will be implemented on all claims, including past due interests (PDIs), and the remaining claims restructured into bonds maturing from 2026 to 2035 with coupon rates ranging from 0% to 6%.<\/p>\n

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The rating agency, Fitch, has affirmed Ghana\u2019s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at \u2018RD\u2019 and Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) at \u2018CCC\u2019. Ordinarily, the UK-based firm… <\/p>\n","protected":false},"author":1,"featured_media":24575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"yes","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-24520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/24520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24520"}],"version-history":[{"count":2,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/24520\/revisions"}],"predecessor-version":[{"id":24577,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/24520\/revisions\/24577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/media\/24575"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}