Fitch Ratings has revised the Outlook on Nigeria’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to negative from stable and affirmed the IDRs at ‘B+’. The issue ratings on Nigeria’s senior unsecured foreign currency bonds have also been affirmed at ‘B+’.
The country ceiling has been affirmed at ‘B+’ and the short-term foreign and local currency IDRs have been affirmed at ‘B’. The revision of the outlook reflects tight forex liquidity and low oil production that contributed to the country’s first recession since 1994. The economy contracted through the first three quarters of last year and Fitch estimates gross domestic product (GDP) growth of -1.5 per cent last year as a whole.
Fitch said: “We expect a limited economic recovery in 2017, with growth of 1.5 per cent, well below the 2011-15 annual growth average of 4.8 per cent. The non-oil economy will continue to be constrained by tight foreign exchange liquidity.