Standard & Poor’s has released its latest assessment of Nigeria, retaining the country’s sovereign rating at BB- with a negative watch.
The rating was previously BB-with a negative outlook.
This means that the agency has adjusted its rating slightly by placing the country on a negative watch owing to the pressure of falling oil prices on the economy as well as heightened political risks.
The development was confirmed in a statement issued on Wednesday night by the Ministry of Finance.
The statement, issued by the Special Adviser on Communications to the Finance Minister, Mr. Paul Nwabuikwu, said that the downgrade of the economy meant the government needed to work very hard to reposition it.
It also said other oil producing countries like Saudi Arabia had also been put on the negative watch, while a number of others, including Kazakhstan, Bahrain and Oman, were downgraded outright.
The statement reads, “Standard & Poor’s has just released its latest assessment of Nigeria, which retains the country’s sovereign rating at BB- with a negative watch. Previously, it was BB-with a negative outlook.
“Other oil producing countries like Saudi Arabia have also been put on negative watch, while a number of others, including Kazakhstan, Bahrain and Oman were downgraded outright.
“It is important to note that in spite of the serious challenges arising from the sharp fall in oil prices, Nigeria is doing quite well compared to some other oil producing countries.
“For example, while the economies of Russia and Venezuela are projected to contract and experience negative growth this year, Nigeria’s Gross Domestic Product has been projected by the IMF to grow by 4.8 per cent, which is quite robust by global standards.
“Thus, Nigeria has not been downgraded but the country clearly needs to work harder to actualise its recently announced policy response to the current economic challenges.”
