Nigeria objects to Moody’s downgrade
2023.02.02 08:38
Nigeria objects to Moody’s downgrade
By Tiffany Smith
Budrigannews.com – On Thursday, Nigeria’s finance minister stated that she disagreed with Moody’s (NYSE:)’s “surprise” downgrade of the nation’s credit rating, insisting that the agency’s concerns were already being addressed by the government.
Last week, the West African oil producer was downgraded by Moody’s to Caa1 from B3, stating that the government’s fiscal and debt position was expected to continue deteriorating. This news sent Nigeria’s dollar-bond and currency forwards plunging.
The minister, Zainab Ahmed, stated to reporters in Abuja, “Moody’s downgrade came as a surprise to us because we had presented all the work that we have done to stabilize the economy.”
“However, these are external rating agencies that do not fully comprehend the domestic environment in which we operate.”
She stated that she anticipated a more positive S&P rating on Friday.
Moody’s assessment differs from S&P’s. She stated, “They have released a much better assessment.”
In recent years, crude theft has caused a shortage of oil production in Nigeria, but production has begun to recover.
In addition, it has experienced persistent dollar shortages and high debt service costs, which have reduced government revenues.
Moody’s downgraded the company for these reasons.
