The development comes after the government missed the grace period to make a $40.6 million coupon payment on its $1 billion 2026 Eurobond.
Due to the current economic challenges in the country, Ghana has suspended making payments on selected external debt components.
The latest verdict by Fitch comes after Ghana's local debt rating was downgraded to ‘restricted default' on February 14, 2023.
Fitch in a recent statement issued on February 21, 2023, downgraded Ghana's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C'.
It further added that it does not assign outlooks to sovereigns with a rating of 'CCC+' or below.
Fitch also downgraded the rating of Ghana’s US$1 billion Eurobond maturing on 18 January 2026 to 'D' from 'C' and withdrew its rating.
“Fitch has affirmed all the long-term senior unsecured foreign-currency-denominated issue ratings at 'C' and withdrawn their ratings. Fitch has also affirmed the partially-guaranteed USD1 billion notes maturing in 2030 at 'CC',” the agency said.
“Issue ratings for Ghana's USD1 billion notes paying 8.125% and maturing on 18 January 2026 (ISIN US374422AC70 and ISIN XS1108847531) have been withdrawn because of default,” it added.
It further explained that “Issue ratings for all other long-term senior unsecured foreign-currency (FC)-denominated instruments have been withdrawn as these instruments are no longer considered by Fitch to be relevant to the agency's coverage given that the sovereign has announced a moratorium on these instruments and they will be included in the common framework external debt restructuring.
"Fitch expects all of these remaining instruments to default in due course, either as the sovereign misses debt service payments or as an agreement is reached on restructuring the bonds,” it concluded.
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International ratings firm, Fitch