S&P lowers Nigeria ratings to ‘B/B’ on weak growth dynamics; Outlook stable – Reuters

Sept 16 (Reuters) – S&P Global Ratings:

* S&P revises Nigeria sovereign credit outlook up to stable from negative; Current rating is B

* S&P – Expecting a 1% contraction in Nigeria’s real GDP growth in 2016, feeble growth of 2% next year, a return to higher growth of 4% only from 2018

* S&P on Nigeria – The stable outlook signals assessment that at this lower rating the risks to the government’s credit standing are balanced

* S&P on Nigeria – Lowered its long-term foreign and local currency sovereign credit ratings on the Federal Republic of Nigeria to ‘B’ from ‘B+’

* S&P on Nigeria – Although Nigeria’s general government debt remains low, debt servicing costs as a percentage of general government revenues are high and rising

* S&P on Nigeria – Economy has weakened owing to marked contraction in oil production, restrictive foreign exchange regime, delayed fiscal stimulus

* S&P on Nigeria – Estimate sectorwide credit losses to likely be between 3.0%-3.5% of loans in both 2016, 2017