Flash: S&P Issues New Ratings On Nigeria

S&P revises Nigeria sovereign credit outlook up to stable from negative; Current rating is B Expecting a 1% contraction in Nigeria’s real GDP growth in 2016, feeble growth of 2% next year, a return to higher growth of 4% only from 2018 The stable outlook signals assessment that at this lower rating the risks to […]

S&P revises Nigeria sovereign credit outlook up to stable from negative; Current rating is B
Expecting a 1% contraction in Nigeria’s real GDP growth in 2016, feeble growth of 2% next year, a return to higher growth of 4% only from 2018
The stable outlook signals assessment that at this lower rating the risks to the government’s credit standing are balanced
Lowered its long-term foreign and local currency sovereign credit ratings on the Federal Republic of Nigeria to ‘B’ from ‘B+’
Although Nigeria’s general government debt remains low, debt servicing costs as a percentage of general government revenues are high and rising
Economy has weakened owing to marked contraction in oil production, restrictive foreign exchange regime, delayed fiscal stimulus
Estimate sector wide credit losses to likely be between 3.0%-3.5% of loans in both 2016, 2017
Source: Reuters

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