Professor of economics at the Institute of Statistical, Social and Economic Research, Professor Peter Quartey says he believes investors will be discerning about the latest ranking from international ratings agency, Standard and Poor’s which saw Ghana’s credit rating move from B to a B negative.
Already the Ministry of Finance has described as unfortunate the recent downgrade of the country’s credit rating.
The Ministry in a press statement said that while it recognised that the downgrade was widespread — affecting other countries worldwide — it found it disturbing that ratings agencies would choose that path at a time when countries, including Ghana, are battling an unprecedented crisis.
Ratings agency Standard and Poor’s on September 11 downgraded Ghana’s long-term foreign and local currency sovereign credit ratings to B-negative from B.
The agency, however, affirmed the short-term ratings at B, with the outlook being adjudged as stable.
In an interview with Citi Business News, Professor Peter Quartey said, the downgrade of the country’s rating should be interpreted in the context of the COVID-19 pandemic.
“The agency is doing its job by rating, that is the mandate they have been set up to do, to rate counties and institutions. However, the timing is not too good, but I believe well-meaning people out there, investors and the like will look at this rating and understand it within the context of the pandemic that yes we have been downgraded but within the context of the pandemic. Nobody expected an upgrade so it is not surprising, but it is something that we were all expecting, except that I believe investors who will see this data will be discerning. We are not in normal times and it was not just Ghana but several other countries that were downgraded because of the effects of the pandemic,” he added.