Fitch Rates Nigeria’s Eurobond B+; Here’s What It Means

Nairametrics| The $1 billion Eurobond subscription issued by the Federal Government (FG) has been the subject of much attention in recent days by economic analysts and politicians alike with mixed reviews coming in. For some, the 780% over-subscription of the bond is a testament to the fact that the economic world still has strong appetite for Nigeria, while for others the 7.875% interest rate is a sore point as the repayment of the bond could impact economic activities.

Global ratings agency, Fitch, however, yesterday released its final ratings on the 15-year unsecured notes and labelled it a ‘B+’. According to a statement from the agency, Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’, which has a Negative Outlook played a key role in determining the final ratings for the bond.

What though does a B+ rating mean? Credit ratings are a measure of the amount of risk creditors are taking by buying into a particular debt.

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Chacha Wabara

Chacha Wabara is a legal practitioner, blogger and fitness coach. She has over 5 years experience in blogging and freelance writing. She has written several articles and research work over the years as a freelance contributor. She joins Nairametrics as Our News and Analysis Lead.

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