* SP now in line with Fitch, Moody’s assigns Nigeria rating
* Forex reserves higher on oil prices, scrapped subsidy
* Political tensions, insecurity main risks to ratings
By Joe Brock
ABUJA, Nov 7 (Reuters) – Standard Poor’s upgraded
Nigeria’s credit rating on Wednesday because of improved
financial stability and optimism over reforms to the banking and
electricity sectors.
Nigeria is among the world’s top 10 crude oil exporters and
a key supplier to the United States, China and India. It is
Africa’s second-largest economy after South Africa.
GDP growth is projected at around 6.5 percent this year,
down from 7.4 last year due to the impact of insecurity and the
economic slowdown in countries importing Nigeria’s oil.
The ratings agency raised its long-term foreign and local
currency sovereign credit rating to BB- with a stable outlook,
three notches below investment grade, from B+. This brings its
view in line with Fitch’s rating.
Fellow ratings agency Moody’s also expanded its coverage to
include Nigeria on Wednesday, assigning a Ba3 rating with a
stable outlook. Moody’s said it also expanded its coverage to
Kenya and Zambia.
Continued…
