S&P Global Ratings on Friday affirmed Nigeria’s ‘B-/B’ long and short-term foreign and local currency sovereign credit ratings by revising its outlook on the West African nation to negative from stable.
The rating comes after Moody’s Investors Service, another global credit rating agency, downgraded Nigeria’s rating further at Caa1, saying it expects the government’s fiscal and debt position to worsen as the government grapples with far-reaching fiscal strain.
A credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of a country.
The new rating shows that the country’s financial situation varies noticeably, with a slight change in its investment grade.
S&P said it’s negative outlook reflects increasing risks to Nigeria’s debt servicing capacity over the next one-to-two years due to intensifying fiscal and external pressures.
According to the rating agency, the outlook revision reflects its view…
