Two lecturers from Ghana’s two reputable institutions of higher learning have clashed over the credibility of Moody’s Investors Service rating of Ghana’s economic outlook from stable to positive.
Moody’s Investors Service, an American credit rating agency and a subsidiary of Moody’s Corporation, recently changed Ghana’s credit rating from stable to positive with a B3 rating.
This means Ghana can meet its debt obligations to bond investors.
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Speaking in an interview on Joy News’ PM Express on Wednesday, Dean of the School of Business at University of Cape Coast (SBUCC), Professor John Gatsi questioned the credibility of the agency’s rating, especially in an election year, asserting that the rating could have been solicited (paid for) by the government.
He also argued that since it is not currently known whether the rating was solicited or not, the rating by the agency cannot be relied on, as similar ratings given by the same agency in the past had been wrong.
Commenting on the assertion made by Professor Gatsi on the possible solicitation of the rating, senior lecturer at the University of Ghana Business School (UGBS), Dr Lord Mensah on the same show disagreed with Professor Gatsi.
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He argued that the agency had carved a niche for itself and would not compromise its integrity for a small country like Ghana and would, therefore, present an objective report.
“We just came from a global financial turmoil and these credit rating agencies were the focus of most of the failures and since then there has been restructuring and global awareness of these rating agencies for which the various stakeholders want them to do the right thing. Apart from that, Ghana is just a small country for a rating agency like Moody to compromise at that level,” he said.