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 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
