Moody's Announces Completion of a Periodic Review of Ratings of Nigeria

Thursday, July 09, 2020 / 07:28 PM / by Moody's Investors Service/ Header Image Credit: The ALT Network/Ecographics 

Moody's Investors Service ("Moody's") reviews all of its ratings periodically in accordance with regulations - either annually or, in the case of governments and certain EU-based supranational organisations, semi-annually. This periodic review is unrelated to the requirement to specify calendar dates on which EU and certain other sovereign and sub-sovereign rating actions may take place.

Moody's conducts these periodic reviews through portfolio reviews in which Moody's reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1st January 2019, Moody's issues a press release following each periodic review announcing its completion.

Moody's has now completed the periodic review of a group of issuers that includes Nigeria and may include related ratings. The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement.

The credit profile of Nigeria (issuer rating B2) reflects "ba2" economic strength, supported by the country's substantial oil and gas endowment and long-term growth prospects, though constrained by very low GDP per capita; "caa3" institutions and governance strength, with very weak institutional capacity, high levels of corruption, and very poor policy effectiveness; "ba1" fiscal strength, with low levels of public debt but a high interest payments to revenue ratio explained by an underdeveloped revenue base, itself over-reliant on hydrocarbon revenues; and "ba" susceptibility to event risk driven by political risk, due to a fractious political landscape, militancy in the Niger Delta, and violence in the north-east that aggravates income inequality.

Related News - Rating Agencies on Nigeria

1. Nigeria's Oil Output Cap to Weigh on Growth, External Finances
2. Moody's Affirms Nigeria's B2 Ratings, Maintains Negative Outlook
3. Fitch Downgrades Nigeria to 'B'; Outlook Negative
4. Nigeria Long-Term Rating Lowered To ''B-'' On Weakening External Position
5. Nigeria's Outlook Revised To Negative On Falling Foreign Exchange Reserves
6. Moody's Announces Completion of a Periodic Review of Ratings of Nigeria
7. Fitch Revises Outlook on Nigeria to Negative; Affirms at 'B plus'
8. Moody's Changes Nigeria's Sovereign Ratings Outlook to Negative From Stable; Affirms The B2 Ratings
9. Fitch Affirms Nigeria at 'B plus'; Outlook Stable

Related News - Rating Agencies on Banks

1. Moody's Announces Completion of a Periodic Review of Ratings of Bank of Industry
2. Coronavirus Shock Likely to Reduce Some Banks' Capital, Increase Credit Vulnerabilities
3. Fitch Maintains Access Bank's 'Aplus (nga)' National Long-Term Rating on RWN
4. Fitch Revises 2 Nigerian Banks' National Ratings
5. Banking System Outlook Update - Nigeria Outlook Changes to Negative Due to Oil Price Collapse
6. Various Rating Actions On Nigerian Banks By S and P Following Sovereign Downgrade; Outlooks Stable
7. Nigerian Banks at Severe Risk from Oil Price Slump, Coronavirus
8. Fitch Downgrades 3 Nigerian Banks to 'B', Places All 10 Banks on Negative Watch
9. Outlooks On Six Nigerian Banks Revised To Negative After Same Action On Sovereign
10. Fitch Revises Outlook on UBA Subsidiaries to Negative on Parent Action
11. Fitch Revises Outlook on 4 Nigerian Banks to Negative on Sovereign Action
12. Moody's Affirms Bank of Industry Ratings, Changes Outlook to Negative from Stable
13. Moody's Affirms Ratings of Nigerian Banks Following Action On The Nigerian Government
14. Fitch Affirms Union Bank of Nigeria Plc at 'B-'; Outlook Stable
15. Fitch Affirms Stanbic IBTC Bank at 'AAA(nga)'
16. Fitch Affirms Zenith Bank Plc at 'B' plus; Outlook Stable
17. Fitch Affirms Bank of Industry at 'B' plus; Outlook Stable
18. Fitch Affirms United Bank for Africa PLC at 'B' plus; Outlook Stable
19. Fitch Affirms Access Bank at 'B'; Stable Outlook
20. Fitch Affirms Guaranty Trust Bank at 'B' plus; Stable Outlook
21. Fitch Revises Outlook on FBNH to Stable; Affirms at 'B-'
22. S and P Global Ratings Affirmed ETI And Ecobank Nigeria Ltd Ratings; Outlook Stable
23. Fitch Rates Access Bank's Tier 2 Subordinated Debt Final 'A(nga)'
24. Fitch Affirms Ecobank Transnational Inc at 'B'; Outlook Stable
25. Access Bank 'B and B' Ratings Affirmed; Outlook Stable

Related News - Rating Agencies on Selected Companies and Notes

1. Moody's Announces Completion of a Periodic Review of Ratings of Interswitch Limited
2. Moody's Announces Completion of a Periodic Review of Ratings of SEPLAT
3. Moody's Assigns Ratings to Dangote Cement Plc's DMTN Program and Proposed Series 1 Notes
4. Rating Actions Taken On Several Corporate Issuers With Exposure To Nigeria
5. Fitch Affirms Bharti Airtel at ''BBB-''; Off Watch Negative; Outlook Stable
6. Fitch Revises IHS's Outlook to Negative; Affirms at 'B plus'
7. Moody's Affirms Interswitch's Ratings; Outlook Remains Stable
8. Moody Changes Ratings for IHS, Seplat and DANGCEM Following Negative Rating on Sovereign Outlook
9. Moody's Assigns B2 Corporate Family Rating To Interswitch Limited; Outlook Stable

Related News - Rating Agencies on Kaduna State

1. Fitch Revises Outlook on Kaduna State to Negative on Sovereign Rating Action; Affirms at 'B'
2. Fitch Affirms Nigeria's Kaduna State at ''B''; Outlook Stable - Oct 11, 2019
3. Fitch Affirms Nigeria's Kaduna State at 'B'; Outlook Stable - May 04, 2018

Related News - Rating Agencies on Lagos State

1. Fitch Downgrades Lagos State to 'B' on Sovereign Rating Action; Outlook Negative
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3. Global Credit Rating (GCR) Downgrades Lagos State's Environmental Municipality Note
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