Fitch Ratings has assigned B+ ratings to Nigeria’s upcoming denominated $1 billion Eurobond.
B+ rating is usually the lowest investment grade rating assigned to a security which signifies that the issuer (Nigeria) has a moderate chance of default. This simply means that Nigeria’s Long-Term Foreign-Currency IDR has a revised outlook of negative from stable.
The global rating agency explained in a note that the final rating assignment was chanced on the receipt of final documents materially conforming to information already reviewed.
Last week, in the meetings led by Finance Minister Kemi Adeosun and the central bank’s Deputy Governor Sarah Alade and organised by Citigroup Inc. and Standard Chartered Plc, Nigeria met investors for its first Eurobond sale in more than three years as it battles the worst economic in about ten years.
The proceeds, along with those from a $1 billion loan Nigeria will seek from the World Bank, will be used to fill the government’s funding gap as it battles plummeting revenue from oil exports and shortages of fuel and foreign-currency.