Moody’s also affirmed Ghana’s rating at B31.

Moody’s cited significant fiscal deficit reduction and success in implementing structural reforms over the past year, as well as reduced government liquidity risk on the external side following the issuance of the US$750m Eurobond, the proceeds of which are earmarked for debt repayments as some of the key drivers for the stabilization of the rating.

Other reasons cited for the revision were improved balance of payments dynamics, including improved FDI inflows and continued development of oil and gas resources.

Moody’s since March 2015 has rated Ghana at B3/ Negative Outlook.

Finance Ministry welcomes rating

A statement from the Finance Ministry said ‘this positive action comes at a time of improving macroeconomic and fiscal indicators and follows our recent successful Eurobond issuance of US$750mn, priced competitively at 9.25%, in September 2016.

Moody’s rating shows Ghana is doing well – Mahama

President Mahama also said the latest rating was an indication that government is doing something right.

“Our country is respected in the international community and everybody recognizes that. Ghana is rising, Ghana is doing well. In my absence we were pleased to hear that Moody’s credit rating agency has upgraded Ghana, it shows that we are doing something right and we are pleased about the way things are happening. Let us continue to work together as one nation, lets believe in ourselves and I believe that, more than the sky is the limit,” he added.

But speaking at the launch of the NPP’s 2016 manifesto at the Trade Fair Center in Accra, the former Deputy Governor of the Bank of Ghana, said “Economic mismanagement and corruption has resulted in Ghana turning to the IMF for a bailout. Ghana’s sovereign credit rating has been downgraded from B+ positive. Without oil, Ghana was being rated at B+ Positive under the NPP. We’ve now come down with oil under the NDC and John Mahama to B – (negative) with a stable outlook in 2016 with oil. In fact, International Credit Ratings Agencies like Moody’s, Fitch, Standard and Poor’s, now have basically the same credit rating for Ghana.”

The former Deputy Central Bank Governor said the rating does not constitute an upgrade.

“The recent revision of Ghana’s Outlook from B/Negative to B- Stable, which is the equivalent of the B-3, has resulted in a misinterpretation by the NDC government and President Mahama that Ghana’s credit ratings has been upgraded. This is in fact not the case. Moody’s did not upgrade Ghana’s rating. Ghana’s rating under Moody’s is still B/Negative. It is only the outlook that has been revised, and that is not equivalent to a ratings upgrade. Sometimes one wonders whether they don’t read or they don’t understand. So, let me give Mr. President a free piece of advice. Mr. President, please desist from embarrassing yourself by stating that Moody’s has upgraded Ghana. Your economic management team should explain that difference to you.”

“The Mo Ibrahim 2016 report on governance shows that on virtually all key indicators such as safety and the rule of law, human rights, economic opportunities, infrastructure, human development, business environment, health and public management, all these indicators, Ghana is worse off today than it was ten years ago. The IMF in its recent review of the Ghanaian economy has warned that Ghana is on the cask of a financial and economic crisis.

“Notwithstanding this abysmal record, President John Mahama is actually asking Ghanaians where the economic crisis is. He is clearly out of touch. Mr. President the economic crisis is out there if you care to look out of the Flagstaff House”.
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By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana
Follow @AfanyiDadzie

The post Stop embarrassing yourself over Moody’s rating – Bawumia to Mahama appeared first on Citi 97.3 FM - Relevant Radio. Always.

Moody’s, in its recent economic report of Ghana defined the country’s economic outlook as positive, affirming the rating at B3.

The report cited significant fiscal deficit reduction and success in implementing structural reforms over the past year, as well as reduction in government liquidity risk on the external side.

The agency pointed out that the proceeds of the US$750m Eurobond earmarked for debt repayments is part of the key drivers for the stabilization of the rating.

Other reasons cited for the revision were improved balance of payments dynamics, including improved FDI inflows and continued development of oil and gas resources.

But speaking at the campaign launch of NPP Parliamentary nominee for the Weija-Gbawe constituency, Tina Mensah in Accra, Nana Addo said the ratings is not a true reflection of the current state of Ghana’s economy, adding that there are some challenges that the governing NDC is still struggling to tackle.

“Is NDC taking the massive unemployment rate in our country into account?This is not the way that the Ghanaian people want to be governed. They expect to be governed with truth not with deception, with honesty and not with lies, with policy and not with propaganda,” Nana Addo said.

Rating shows Ghana is doing well – Mahama

Nana Addo’s comments come days after President Mahama indicated that the rating shows that government is doing something right.

According to him, the positive outcome of the bilateral talks and negotiations on his recent visit to the United Nations General Assembly and France, points to the goodwill and strong image Ghana has among her peers.

President Mahama made these comments on his return to Accra from the United Nations and UNESCO meetings.

“Our country is respected in the international community and everybody recognizes that. Ghana is rising, Ghana is doing well. In my absence we were pleased to hear that Moody’s credit rating agency has upgraded Ghana, it shows that we are doing something right and we are pleased about the way things are happening. Let us continue to work together as one nation, lets believe in ourselves and I believe that, more than the sky is the limit,” he added.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post Moody’s rating of Ghana’s economy inaccurate – Nana Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.