Nigeria disagrees with 'surprise' Moody's downgrade - finance minister

February 03, 2023 12:22 AM AEDT | By Reuters
Follow us on Google News:
Image source: Reuters

By Felix Onuah and Chijioke Ohuocha

ABUJA (Reuters) - Nigeria's finance minister said on Thursday she disagreed with what she called a "surprise" downgrade of the country's credit rating by Moody's, insisting the government was already addressing the agency's concerns.

Moody's downgraded the West African oil producer last week to Caa1 from B3, saying the government's fiscal and debt position was expected to keep deteriorating, an announcement that sent Nigeria's dollar-bond and currency forwards tumbling.

"Moody's downgrade came as a surprise to us because we had presented all the work that we have been doing to stablise the economy," the minister, Zainab Ahmed, told reporters in Abuja.

"But these are external rating agencies that don't have the full understanding of what is happening in our domestic environment."

She said she expected S&P's rating, due on Friday, would be more positive.

"S&P's assessment is not the same as Moody's. They have come out with a much better assessment," she said.

Nigeria has faced oil production shortages due to crude theft in recent years, though production has started to recover.

It has also suffered chronic dollar shortages coupled with high debt service which has eaten into government revenues.

Moody's cited these factors as reasons for its downgrade.

(Reporting by Felix Onuah and Chijioke Ohuocha; Editing by James Macharia Chege and Andrew Heavens)


Disclaimer

The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.



Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK