S&P cuts Ghana’s sovereign rating to ‘selective default’ on suspended debt payments

Global Ratings agency S&P on Tuesday lowered the sovereign rating on Ghana to ‘selective default’ from CC, a day after the country announced it would suspend its debt payments.

S&P Ratings said it views the moratorium as a ‘selective default’, and did not issue any outlook.

“We expect to lower our ratings on Ghana’s foreign currency issues to ‘D’ (default) if the government fails to make the next scheduled coupon payment on its commercial foreign currency debt,” the ratings agency said.