Economy: Naija infects Lagos with negative Fitch Ratings

Global rating agency, Fitch Ratings, says it has downgraded the outlook of Lagos State’s long-term foreign currency issuer default rating to negative from stable.

The decision, the credit rating agency said, followed the recent downgrade of Nigeria’s outlook, adding that Lagos State, as the issuer, was rated at the same level as the sovereign for the long-term foreign currency IDR.

Fitch, however, affirmed Lagos’ long-term foreign and local currency IDRs at ‘BB-’, short-term IDR at ‘B’ and national long-term rating at ‘AA+(nga)’.

According to the agency, the outlooks on the local currency IDR and on the national long-term rating remain stable.

Fitch said the rating action reflected the application of its international, local and regional governments’ rating criteria outside the United States, according to which subnational ratings could not usually be higher than their sovereign.

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