BRIEF-Fitch Downgrades Ghana To 'Ccc'

BY Reuters | CORPORATE | 08/10/22 09:09 AM EDT

Aug 10 (Reuters) - Fitch:

* FITCH DOWNGRADES GHANA TO 'CCC'

* FITCH SAYS DOWNGRADED GHANA'S LONG-TERM FOREIGN-CURRENCY (LTFC) ISSUER DEFAULT RATING (IDR) TO 'CCC' FROM 'B-'

* FITCH SAYS DOWNGRADE REFLECTS DETERIORATION OF GHANA'S PUBLIC FINANCES, WHICH HAS CONTRIBUTED TO A PROLONGED LACK OF ACCESS TO EUROBOND MARKETS

* FITCH SAYS ESTIMATES THAT GHANA FACES USD2.75 BILLION OF EXTERNAL DEBT SERVICING IN 2022

* FITCH SAYS GOVERNMENT'S HIGH INTEREST COSTS AND LOW REVENUE WILL CONTINUE TO BE IMPEDIMENTS TO GHANA'S FISCAL CONSOLIDATION EFFORTS

* FITCH SAYS ACCESS TO EXTERNAL FINANCING WILL REMAIN TIGHT, AS GHANA IS LIKELY TO REMAIN LOCKED OUT OF EUROBOND MARKETS

* FITCH SAYS GLOBAL SHOCKS HAVE DEPRESSED GHANA'S NEAR-TERM GROWTH OUTLOOK

* FITCH SAYS GHANA GOVERNMENT'S HIGH INTEREST COSTS AND LOW REVENUE WILL CONTINUE TO BE IMPEDIMENTS TO FISCAL CONSOLIDATION EFFORTS Source text for Eikon: Further company coverage: [ ]

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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