RECESSION | Standard & Poor’s Downgrades Nigeria to JUNK

by on September 19, 2016

S&P Global Ratings during the week further downgraded Nigeria further into junk territory just as Nigeria prepares to issue its first Eurobond since 2013.

“Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange policy and delayed fiscal stimulus,” S&P said Friday in an e-mailed statement after markets closed. While government debt remains low, “servicing costs as a percentage of general government revenues are high and rising”

The downgrade is the latest blow to the economy, which shrank in the last two quarters as Nigeria is headed for its first full-year recession since 1991.

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