Standard & Poor’s has just released its latest assessment of Nigeria which retains the country’s sovereign rating at BB- with a negative watch. Previously, it was BB-with a negative outlook.
This means that the rating agency has adjusted its rating slightly by placing the country on negative watch because of pressure from falling oil prices on the economy as well as political risks. Thus, Nigeria has not been downgraded but the country clearly needs to work harder to actualize its recently announced policy response to the current economic challenges, it said.
Other oil producing countries like Saudi Arabia have also been put on negative watch, while a number of others, including Kazakhstan, Bahrain and Oman were downgraded.
In spite of the serious challenges arising from the sharp fall in oil prices, Nigeria is doing quite well compared to some other oil producing countries. For example, while the economies of Russia and Venezuela are projected to contract and experience negative growth this year, Nigeria’s GDP has been projected by the IMF to grow by 4.8%.