Ghana’s capital market is set for a major shift as the Securities and Exchange Commission moves to enforce mandatory credit ratings for public debt securities, marking a transition from guidelines to full regulatory implementation.
The initiative, supported by the Ghana Stock Exchange, will require all new corporate bonds, green bonds and commercial papers issued to the public to carry independent credit ratings from locally licensed agencies.
This follows the rollout of the Securities Industry (Credit Ratings Agencies) Guidelines 2021 and the Green Bonds Guidelines 2024, which aim to strengthen transparency, investor protection and market discipline.
Two firms—Agusto & Co. (Ghana) and Beacon Ratings—are already positioning themselves for increased activity. Agusto & Co. is preparing ratings for commercial paper issuances, while Beacon Ratings is currently assessing major institutions including First Atlantic Bank, Ghana Oil Company Limited and First Bank Ghana.
The regulatory push comes as Ghana’s domestic bond market reopens following the recent debt restructuring, with renewed appetite for longer-term securities.
Under the new regime, credit ratings—ranging from AAA to D—will serve as standardized measures of creditworthiness, helping investors distinguish between investment-grade and higher-risk instruments.
SEC officials insist the move is critical to building a more resilient market. “Credit ratings are not just an optional add-on; they are a critical pillar for transparency and market discipline,” a senior official noted.
However, government-issued securities remain exempt from this requirement, as sovereign bonds are typically rated by international agencies such as Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Market analysts expect the SEC to phase in enforcement, starting with corporate bonds before extending requirements to other investment instruments.
By: Toma Imirhe / businesspostonline
