The Ministry of Finance justifies the continuation of relations with the rating agencies despite the recent downgrades

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The finance ministry has defended its continued relationship with some international agencies despite recent poor ratings that have infuriated the ministry.

Moody’s and Fitch have all recently downgraded the country in terms of debt payment obligations.

These have been met with fierce disagreement from the Ministry of Finance, which says the ratings are inaccurate.

Speaking on PM Express on Tuesday February 8, the director of the ministry’s financial sector division, Sampson Akligoh, said these agencies are independent and what the government can do is appeal but also say the truth.

“The rating agencies come to you and go through their process and behind that process is a lot of analytical work. With that analytical work comes a lot of assumptions, they have their modules and they have things that they look at. »

“They [rating agencies] are independent. I think it is important that this process continues. The option for the country is for you to appeal, but if we are satisfied that you have feelings to express on the notes, as in all countries, you express it too, ”he said. .

Meanwhile, the African Peer Review Mechanism (APRM), an African Union (AU)-backed group, has asked Moody’s Investors Service to consider an appeal from the government of Ghana regarding the recent downgrade by the country’s debt outlook agency.

According to the Panel, technical inaccuracies and the nature of the agency’s assessment have the potential to downplay the strength of fundamentals in Ghana and thwart the government’s fiscal consolidation efforts.

“Moody’s should review the Government of Ghana’s appeal against inaccurate credit downgrading, as provided for in the agency’s own ‘Procedures and Methodologies Used to Determine Credit Ratings’,” the APRM said in a statement on Tuesday.

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