Ghana

Fitch Ratings has revised the Outlook on Ghana's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to Stable from Negative and affirmed the IDRs at 'B'. Fitch has also affirmed the issue ratings on Ghana's senior unsecured foreign and local currency bonds at 'B', as well as the 'BB-' rating on Ghana's USD1 billion partially guaranteed note. Ghana's Country Ceiling and Short-Term Foreign and Local Currency IDRs have been affirmed at 'B'.

Ghana's central bank cut its Monetary Policy Rate (MPR) by 200 basis points to 23.50 percent, saying growth is likely to remain significantly below potential while "underlying inflation pressures have eased considerably and inflation is projected to trend down towards the medium term target."

Ghana's disclosure of unreported expenditure and the resulting failure to hit the 2016 fiscal deficit target highlights substantial risk to the country's public finances, Fitch Ratings says. Public finances are an important ratings weakness, but we think the new government is committed to fiscal adjustment under Ghana's IMF programme.

Ghana's central bank maintained its monetary policy rate at 25.50 percent, saying the risks to inflation and growth are balanced, with the trend toward declining inflation considered positive.