ACCRA, Ghana – While Fitch Ratings recently upgraded Ghana’s credit rating, the agency’s assessment highlighted several environmental, social, and governance (ESG) factors that significantly influence the nation’s credit profile. Key among these are Ghana’s scores for Political Stability and Rights, and Rule of Law, Institutional and Regulatory Quality, and Control of Corruption, all receiving an ESG Relevance Score of ‘5’.
These scores, which carry the highest weight in Fitch’s Sovereign Rating Model, indicate that these governance issues are highly relevant to the rating. Ghana’s percentile rank below 50 for these specific World Bank Governance Indicators (WBGI) has a negative impact on the country’s credit standing.
Conversely, Ghana received an ESG Relevance Score of ‘4[+]’ for Human Rights and Political Freedoms. This positive impact on the credit profile is attributed to Ghana’s percentile rank above 50 for the Voice and Accountability pillar of the WBGI, reflecting a moderate level of rights for political participation.
Furthermore, Ghana’s ESG Relevance Score of ‘4’ for Creditor Rights was noted. This factor, relevant to all sovereigns, negatively impacts Ghana’s credit profile due to the country’s recent public debt restructuring in 2025, which affects willingness to service and repay debt.
Fitch clarifies that ESG Relevance Scores are not direct inputs into the rating process but serve as an observation on the materiality of ESG factors in the rating decision.
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