Fitch Ratings upgrades Nigeria’s $300 million Bond to 'B+'
The implication of this B+ rating for the Diaspora bond is that the financial situation in Nigeria still varies noticeably, but may not affect the debt repayments at when due.
Fitch Ratings is one of the five global leading credit rating organisations.
The final rating was released on Monday, July 3, 2017, showed the 5.625% bond maintaining its expected ratings issued by the organisation on June 14, 2017.
Though the debut issue of the Diaspora bond was over-subscribed by 30% and has begun trading on the London Stock Exchange, the final Fitch ratings still gave it a negative outlook.
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The implication of this B+ rating for the Diaspora bond is that the financial situation in Nigeria still varies noticeably, but not severe enough to undermine the likelihood of debt repayments at when due.
The key rating drivers and sensitives also show that the bonds’ rating is in line with the country’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’.
Another impact of the B+ and negative outlook ratings for the Nigerian investment climate is that foreign investors’ confidence is reduced and may deter level of trading on the bond.
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