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LequteMan
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Russia’s sovereign credit rating has been downgraded to ‘junk’ status with the rouble strengthening and Moscow-listed shares broadly steady, Bloomberg Reports.
Rating agency S&P cut Russia’s rating from BBB- to BB+, citing Russia’s weakened economic growth prospects, hit by low oil prices and Western sanctions over the Ukraine crisis. Two other major ratings agencies, Moody’s and Fitch, are yet to downgrade Russia to below investment grade.
Nigeria is dangerously following a familiar pattern already displayed by Russia -however with less external reserves and little room to wiggle, NAIRAMETRICS says.
A junk rating for Nigeria will be very bad considering the fact that FG will probably do some borrowing to finance 2015 budget deficits.
If Nigeria is thrown to junk status, bond yields will rise higher sending lending rates even higher than it currently is. Depreciation of the Naira will likely follow.
#Naira #Nairametrics #Nigeria #Russia #Moscow #Abuja #Lagos
Rating agency S&P cut Russia’s rating from BBB- to BB+, citing Russia’s weakened economic growth prospects, hit by low oil prices and Western sanctions over the Ukraine crisis. Two other major ratings agencies, Moody’s and Fitch, are yet to downgrade Russia to below investment grade.
Nigeria is dangerously following a familiar pattern already displayed by Russia -however with less external reserves and little room to wiggle, NAIRAMETRICS says.
A junk rating for Nigeria will be very bad considering the fact that FG will probably do some borrowing to finance 2015 budget deficits.
If Nigeria is thrown to junk status, bond yields will rise higher sending lending rates even higher than it currently is. Depreciation of the Naira will likely follow.
#Naira #Nairametrics #Nigeria #Russia #Moscow #Abuja #Lagos
