Fitch Ratings, one of the foremost rating agencies in performance of global economies, yesterday affirmed Nigeria’s long-term foreign and local currency IDRs and senior unsecured bond ratings at ‘BB-’ and ‘BB,’ respectively.
This is even as it projected that the country’s economic outlook portends stable trend in the months ahead and also affirmed Nigeria’s short-term foreign currency IDR at ‘B’ and country ceiling at ‘BB’.
According to the rating outfit, the affirmation reflects the Gross Domestic Product, GDP, growth slowed to 6.4 per cent in the first half of 2013 but has shown resilience in the face of exogenous shocks: severe floods in 2012 which hit agricultural output; security problems especially in the North earlier this year; and increased oil theft and vandalism and the consequent repair shutdowns which have caused oil output to contract for the second year in a row as the key rating drivers.
While noting that the non-oil economy has slowed but still grew by 7.9 per cent in 2012 and 7.6 per cent in the first half of this year, the agency pointed out the non-oil growth should pick-up in the second half of 2013 as normal weather has resumed and the authorities have responded to security problems.
Source: National Mirror