Fitch Rates FG’s $3bn Notes ‘B+’

Fitch Ratings on Monday rated Federal government of Nigeria’s $3 billion senior unsecured notes ‘B+’.

According to Fitch, the FG’s $1.5 billion 6.500% senior unsecured notes due November 28, 2027 and $1.5 billion 7.625% senior unsecured notes due November 28, 2047 the final rating of ‘B+’.

The latest report by global agency stated that the final rating replaces the expected rating of ‘B+ (EXP)’ that Fitch assigned on 15 November 2017.

Fitch explained further that the expected rating is in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’ with a Negative Outlook.

“The rating is sensitive to any changes in Nigeria’s Long-Term Foreign-Currency IDR,” the report by Fitch ratings added.

The Fitch rating report is coming on the heels of Federal government plans to balance the 2017 external borrowing with the sum of $3 billion partially sourced from issuance in International Capital Market (ICM) of $2.5 billion through Eurobonds or combination of Eurobonds and Diaspora Bonds while $700 million is proposed to be raised from multilateral sources.