L
LequteMan
Guest
Moody’s Investors Service, has finally downgraded Nigeria’s long-term issuer ratings from Ba3 to B1.
Countries graded B1, B2 and B3 are judged to “have speculative elements and a significant credit risk”, while Ba1, Ba2 and Ba3 are seen as “speculative and a high credit risk”.
Moody's ranks the creditworthiness of borrowers, and it said the downgrade is based on Nigeria’s increased external vulnerability “brought about by the prospect of lower-for-longer oil prices”.
The rating was also affected by the “execution risk” in the transition to a less oil-dependent federal budget, and the implications for the government’s balance sheet should it not achieve its aims
Moody’s further said “an elevated interest burden over the next two years while the government grows its non-oil tax receipts” was the third factor in the downgrade.
Angola was also downgraded from Ba3 to B1, Democratic Republic of the Congo from B1 to B2 and Gabon from Ba3 to B1.
Countries graded B1, B2 and B3 are judged to “have speculative elements and a significant credit risk”, while Ba1, Ba2 and Ba3 are seen as “speculative and a high credit risk”.
Moody's ranks the creditworthiness of borrowers, and it said the downgrade is based on Nigeria’s increased external vulnerability “brought about by the prospect of lower-for-longer oil prices”.
The rating was also affected by the “execution risk” in the transition to a less oil-dependent federal budget, and the implications for the government’s balance sheet should it not achieve its aims
Moody’s further said “an elevated interest burden over the next two years while the government grows its non-oil tax receipts” was the third factor in the downgrade.
Angola was also downgraded from Ba3 to B1, Democratic Republic of the Congo from B1 to B2 and Gabon from Ba3 to B1.
