Fitch downgrades Nigeria in latest rating | Ripples Nigeria

Fitch downgrades Nigeria in latest rating

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Nigeria’s ranking by the international rating agency, Fitch has suffered a downgrade.

The agency, which usually classifies the country under the code-name: Lagos State, has in its current Long-Term Local Currency (LTLC) Issuer Default Rating (IDR) reduced its ‘BB-‘ grade, of its last outing, to ‘B+’ only.

But it refused to give more detail on the reason for this, though in its news bulletin, Fitch said the country’s inconsistency in backing up local loans is of concern to monitors of the trend.

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Other sources attributed the downgrade to its inability to sustain local loan status, which had increased from N40 billion to N50 billion in two month.

But a CBN official stated there are several other rating agencies that use variant factors to assess a country’s economy, adding that four in five of such agencies have favourable posted reports on Nigeria.

Said the agency, national ratings could be subject to changes following potential recalibration of the National Rating scale Under EU credit rating agency (CRA) regulation.

It added that one of its publication, International Public Finance Reviews Fitch said it has always interpreted provision for rating review in situations where it believed would make it inappropriate to wait until the next scheduled to upgrade or downgrade status.

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