Moody’s puts negative outlook on Ghana Commercial Bank’s deposit ratings
Ghana Commercial Bank’s deposit ratings have been lowered to negative from stable by Moody’s.
Moody’s action affects GCB’s B1 local-currency long-term deposit ratings and B2 foreign-currency deposit ratings.
The rating actions on GCB’s follow the change in the outlook on Ghana’s B1 government bond ratings to negative on December 5, 2013, Moody’s said in a statement December 10, 2013.
The rating actions, Moody’s said “reflect the risk of further weakening in the government’s capacity to support the bank in case of need; and GCB’s high exposure to government securities, which links the bank’s standalone creditworthiness to that of the sovereign.”
The rating agency indicated that it will likely downgrade GCB’s deposit ratings if the Ghana’s sovereign creditworthiness weakens further.
By Ekow Quandzie