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Standard & Poor�s (S&P), an international rating agency, has cut Ghana�s credit rating by one level, amid concerns that external financial support will not be enough to narrow the country�s budget deficit. The rating was lowered from B to B-, six levels below investment grade with a stable outlook, Standard & Poor�s stated in an e-mail yesterday. �We see the government�s fiscal position as structurally weak,� it said. �We also believe that the government will find agreeing and implementing a conditional lending programme from official lenders difficult. Moody�s Investors Service and Fitch Ratings rate Ghana five steps below investment grade. Regaining rating status But in an interview, the Minister of Finance, Mr Seth Terkper told Bloomberg that the S&P action �reflects the present situation of the economy.� �We are optimistic about the medium-term prospects. We�ll regain our rating.� �It may be a surprise that Standard & Poor�s haven�t waited to see the context of the IMF programme itself,� Stuart Culverhouse, chief economist at the London-based Exotix Ltd., said by phone. �They are right to be critical of the policies the government has been making. The issue is: ��Will Ghana agree to the programme, will they follow it through?� Mr Terkper also told the Daily Graphic in an interview that �from the measures we have put in place presently, we are confident of regaining our lost status�. He said what the S&P based its position on, was done a few months ago and reflected more of the challenges the country was getting out of and not the present situation. �Our rating abilities indicate that the medium term prospects, taking into consideration the fact that we are making progress on subsidies and wages, are bright�, he said. Mr Terkper said the issues about subsidies and wages are the areas that concerned the market most adding that �that one, combined with the fact we are going to strengthen the stabilisation measures with a possible International Monetary Fund (IMF) programme means that we are not relaxing on the measures to stabilise the economy over the medium term which is the next two to three years�. He said the other element which has to do with the medium term prospects �which overlap with this period of stabilisation is also positive because of the gas coming on stream�. Mr Terkper said most of the challenges that the country faced also had to do with respect to the gas coming on stream. He pointed out that the lack of gas from the West Africa Gas Pipeline (WAGP) for about two years also created some challenges but was optimistic about the plans in place to reverse the trend. Mr Terkper said there is an imbalance with the short term and the medium term prospects but noted that with the progress being made with the medium term prospects �We are confident of regaining our rating status�. �So it�s just maintaining the balance between the challenges we have had and the measures we have taken to try and stablise the situation and the prospective medium term measures which everybody acknowledges�, he said. Assurance to investors Asked about government assurance to investors in the face of the impact such downgrades have on their appetite for the country, Mr Terkper said �Investors should not be alarmed because we have spelt out the challenges as well as the prospects during the road show for the eurobond issue and we are following every promise to the latter�. With respect to the IMF programme, he said the country was negotiating a structured programme which will come with a balance of payment support.