Weak governance, volatile oil prices hinder Nigeria’s rating upgrade — FITCH REPORT
However, Fitch, in its latest report, affirmed
Nigeria’s long-term foreign and local currency, Issuer Default Ratings,
IDR, and senior unsecured bond ratings at ‘BB-’ and ‘BB’ respectively,
with a stable outlook.
Fitch also affirmed Nigeria’s short-term foreign currency IDR at ‘B’ and country ceiling at ‘BB-’.
The
rating agency expressed concern that strong vested interests will make
structural reform in Nigeria a continual struggle, especially with
elections in 2015, adding that data weaknesses hampered the monitoring
of economic and fiscal performance and reform progress in the country.
On
the factors that hindered Nigeria’s chances for a rating upgrade, Fitch
noted that the country witnessed a sustained period of lower oil prices
or oil production, coupled with an inappropriate policy response, which
led to serious reserve loss and deterioration in the fiscal position.
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