Finance

Your rating is just a ‘desktop exercise’ – Government fires Moody’s lead analyst on Ghana

Moody’s downgrades Ghana’s credit ratings from B3 to Caa1

Finance Ministry advocates for reforms in leadership of Moody’s

Moody’s rating “negative propaganda”, John Kumah

The government of Ghana has protested against the recent credit ratings by Moody’s as one which was not properly done.

In a February 6, 2022 statement, the Finance Ministry indicated that the international rating agency did not factor in the critical data supplied by government before proceeding to downgrade the country’s credit rating.

It also raised concerns about the experience of Moody’s lead analyst on Ghana, Lucie Villa, who was only recently appointed.

According to the ministry, she “may not properly understand and evaluate Ghana’s deepening credit story” since the country first received its credit rating in 2003.

The statement said the government’s only interaction with the rating agency had been virtual which may have affected the quality of the report generated on Ghana.

To this end, the Finance Ministry described the credit rating as a “desktop exercise”.

“Prior to the announcement, between 28th January to 3rd February 2022, Moody’s virtually engaged Senior Government Officials of the Ministry of Finance and the Bank of Ghana on various issues. The Moody’s team was led by Lucie Villa (Lead Analyst on Ghana at Moody’s ) and supervised by Matt Robinson. It is worthy to note that Lucie Villa only recently (beginning of Jan 2022) took over as the primary analyst covering Ghana for Moody’s.

“We are very concerned that Ms. Villa may not properly understand and evaluate Ghana’s deepening credit story since obtaining our first credit rating back in 2003. She has also not visited the country since assuming her role as such this downgrade at this critical time was based entirely on a desktop exercise, virtual discussions and what we believe to be the omission of critical data provided,” part of the statement read.

Moody’s Investors Service (“Moody’s”) on Saturday, February 5, downgraded the Government of Ghana’s long-term issuer and senior unsecured debt ratings to Caa1 from B3 and changed the outlook to stable from negative.

The downgrade to Caa1 reflects the increasingly difficult task the government faces addressing its intertwined liquidity and debt challenges.

Weak revenue generation constrains the government’s budget flexibility and tight funding conditions on international markets have forced the government to rely on costly debt with shorter maturity.

The government through the Deputy Finance Minister has described the rating as “negative propaganda”.

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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