* Says decision based on rising fuel subsidy, mounting debts
Emmanuel Addeh in Abuja
Fitch Ratings has downgraded Nigeria’s long-term foreign currency Issuer Default Rating (IDR) to ‘B-’ from ‘B’, pegging Africa’s biggest oil producer just six notches above default, and at par with Ecuador and Angola.
The new report is coming weeks after Moody’s, a global ratings agency, equally downgraded Nigeria’s local currency and foreign currency long-term issuer ratings as well as its foreign currency senior unsecured debt ratings to B3 from B2, placing the country for review for downgrade.
Moody’s said the decision was driven by the significant deterioration in Nigeria’s government finances despite a strong rise in international crude oil prices in 2022.
Following in the footsteps of Moody’s, Fitch, a renowned global rating agency, said the latest downgrade was due to government debt service costs and worsening external liquidity, despite…
Source: Thisday Newspaper
