By Agency reporter

Wednesday, 3 Nov 2010

Standard & Poors, an international rating agency, on Tuesday affirmed its B+ long-term rating on Nigeria with a stable outlook.

The agency in a statement also affirmed its B short-term foreign and local currency sovereign credit ratings on Nigeria.

The statement said, ”The outlook is stable, reflecting our expectation that Nigeria will maintain its strong external and fiscal balance sheet and that its budgetary performance will gradually improve over the next few years. The ratings on Nigeria are constrained by high political risk, but supported by a strong balance sheet.”

Reuters quoted the Managing Director, Financial Derivatives Company Limited, Mr. Bismark Rewane, as saying that, ”The announcement will help to allay the concern of potential investors in Nigeria‘s eurobond, especially after Fitch‘s ratings cut its outlook on the country to negative from stable.”

Fitch recently lowered its sovereign credit outlook on Nigeria‘s BB-rating from stable to negative because of withdrawals from the Excess Crude Account and a drop in foreign currency reserves, as well as heightened political uncertainty ahead of elections next year.

Source: Punch