Credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Ghana thus having a big impact on the country’s borrowing costs.

A statement issued by Fitch in London yesterday said, the final rating replaces the expected rating that Fitch assigned on August 1, 2016.

The rating, according to Fitch, is in line with Ghana’s Long-Term Foreign Currency Issuer Default (IDR), which was affirmed in March 2016 at ‘B’ with a Negative Outlook.

“The rating of the notes is sensitive to changes in Ghana’s Long-Term Foreign Currency IDR,” the statement said.

Fitch’s ratings are used as a guide to investors as to which investments are most likely going to yield a return. It is based on factors such as how small an economic shift would be necessary to affect the standing of the bond, and how much, and what kind of debt is held by the company.

Along with Moody’s and Standard & Poor’s, Fitch is one of the top three credit rating agencies. Its rating system is very similar to S&P’s in that they both use a letter system.

Some examples of letter ratings include: AAA – reliable and stable; AA – quality with a bit higher risk; A – economic situation could affect finance; BBB – middle class-an acceptable risk; BB – more prone to economic changes; CCC – vulnerable, dependent on current economic situation; and D – has defaulted before, high risk to default again.

By Times Reporter