Global credit ratings agency Moody’s on Friday upgraded Ghana’s long-term local and foreign currency issuer ratings to “Caa2” from “Caa3” and “Ca,” respectively, citing extensive debt treatment that has significantly alleviated the government’s financial burdens.

The agency also revised the West African country’s outlook to “positive” from “stable.”

The “positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an IMF programme,” Moody’s said in a statement.

The country’s statistics agency said in September that Ghana’s economy grew by 6.9% in the second quarter of 2024, the fastest in five years.

Moody’s also said it expects the country’s debt to keep decreasing, though at a slow pace as the government resumes paying interest and principal on all its debts.