September 20, 2018/S & P Global Ratings
Overview
- We expect Nigeria to maintain modest external assets and government debt levels through 2021.
- We are therefore affirming our ‘B/B’ and ‘ngA/ngA-1’ ratings on Nigeria.
- The outlook is stable.
Rating Action
S&P Global Ratings affirmed its ‘B/B’ long- and short-term sovereign credit ratings on Nigeria. The outlook is stable. At the same time, we affirmed our long- and short-term Nigeria national scale ratings at ‘ngA/ngA-1’.
Outlook
The stable outlook reflects the balance between risks of heightened domestic political tensions, against the potential for an improving external position.
We may lower the ratings if Nigeria’s policymaking and institutional stability weaken significantly, possibly due to election-related disturbances.
We could raise our ratings if Nigeria’s external liquidity indicators improve, perhaps due to further accumulation of international reserves or the extension of average external debt maturities.