Fitch Rates Nigeria's Planned Dollar Notes 'B+(EXP)'

Fitch Ratings has assigned Nigeria’s upcoming senior unsecured USD-denominated notes an expected rating of ‘B+(EXP)’.

The assignment of the final ratings was contingent on the receipt of final documents materially conforming to information already reviewed.

The rating agency explained in a statement yesterday that the expected rating was in line with Nigeria’s long-term foreign-currency issuer default rating (IDR) of ‘B+’ with a negative outlook.

The rating would be sensitive to any changes in Nigeria’s long-term foreign-currency IDR.

On 31 August 2017, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ with a Negative Outlook. The Long-Term Local-Currency IDR is also ‘B+’ with a Negative Outlook.

The Senate Tuesday approved the request by the executive to raise $3billion from the international capital market (ICM) through a Eurobond or Diaspora Bond issue or a combination of both to refinance maturing domestic debts, and raise another $2.5 billion from multilateral donor institutions to fund the capital component of the 2017 budget.

The approval by the Senate followed the adoption of the recommendations of its Committee on Local and Foreign Debts chaired by Senator Shehu Sani (Kaduna, APC).
But before the loan request was approved, the Deputy President of the Senate, Senator Ike Ekweremadu, who presided over Tuesday’s plenary, had charged the DMO to monitor Nigeria’s debt profile to ensure it remains within acceptable limits.