S&P downgrades Nigeria further into junk as oil woes worsen
S&P GLOBAL Ratings downgraded Nigeria further into junk territory just as Africa’s most populous nation prepares to issue its first Eurobond since 2013, amid low oil prices and severe shortages of foreign exchange.The ratings agency lowered Nigeria’s rating one level to B, five levels below investment grade and in line with Kyrgyzstan and Angola. The outlook was changed from negative to stable."Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange policy and delayed fiscal stimulus," S&P said on Friday in an e-mailed statement after markets closed. While government debt remains low, "servicing costs as a percentage of general government revenues are high and rising", the company said.The rating cut comes as Nigeria prepares to issue a dollar bond before the end of the year. The Debt Management Office asked banks wanting to manage a $1bn deal to place bids by September 19. Yields on the nation’s $500m of s...
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