S&P Affirms FG Ratings at 'B/B' Stable Outlook

Standard and Poors (S&P), a rating agency, has affirmed the Federal Republic of Nigeria ratings at ‘B/B’; outlook stable, Reuters reports.

S&P said Nigeria’s stable outlook signals assessment that oil sector improvements will support higher economic growth, fiscal revenues, among other things.

The rating firm said Nigeria’s stable outlook will also support higher current account receipts over next 12 months; help increase foreign currency supply, and keep current account in balance.

Meanwhile, S&P said ratings on Nigeria constrained by view of low level of economic wealth, weak external position, among other things, adding that ratings on Nigeria also constrained by view of real GDP per capita trend growth rates below those of peers with similar levels of development, and future policy responses that may be difficult to predict.

S&P on Nigeria –still see sporadic attacks in north east owing to Boko Haram, as well as risk of another escalation of tensions in the Niger delta.