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Olugbemi. Adeyinka Ogunleye
1 week ago
Overview
Fitch Upgrades Nigeria To ‘B’ Rating, Stable Outlook On Policy Reforms
Fitch Ratings has upgraded Nigeria’s has upgraded Nigeria’s Long-Term Foreign-Currency Issuer Default Rating to ‘B’, from ‘B-‘ with a stable outlook.
According to the rating commentary issued late Friday, “The upgrade reflects increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies.
“The Stable Outlook reflects Fitch’s expectation that the macroeconomic policy stance will sustain improvements in the functioning of the FX market and support the move to lower inflation, although it will likely remain far higher than rating peers. Additionally, we anticipate a continued reduction in external vulnerabilities through further easing of domestic FC supply constraints, while renewed energy sector reforms should help sustain current account surpluses.”
While commending the increased transparency in the FX market, Fitch projected a modest depreciation of the naira in the short term
More: https://punchng.com/fitch-upgrades-nigerias-rating-on-policy-reforms/
