Moody's gives positive outlook to Ghana's economy

Global credit rating agency, Moody's Investor Services, late Monday revised the outlook on Ghana's Long Term Bond ratings from negative to stable.

The agency also affirmed the country's credit rating at B3, citing positive developments in the country's economic management.

The agency has since 2015 given the Ghanaian economy a B3 rating but with a negative outlook, citing the country's debt position and fiscal deficit.

The key drivers of the rating, Moody's said, included the significant fiscal deficit reduction and success in implementing structural reforms over the past year.

It also cited reduced government liquidity risk on the external side following the issuance of the 750 million - U.S. Dollar Eurobond, which has been earmarked for debt repayments.

Furthermore, Moody's said the "Improved balance of payments dynamics, including improved FDI inflows and continued development of oil and gas resources", were also part of the key drivers.

Investor confidence in Ghana suffered some jolt when government began implementing some structural reforms but the Moody rating is expected to rejuvenate this confidence. Endit