One of the world’s leading financial and analytical credit rating agencies, Standard & Poor’s (S&P), one of the foremost credit rating agency in the world, has retained Nigeria’s sovereign credit rating at BB- with a negative watch, which is an indication that the economy has not miscued despite the slip in global crude oil prices.
S&P however made a slight adjustment in the country’s outlook, as it placed Nigeria on a negative watch following the effects of falling oil prices on the economy as well as political risk.
The credit rating agency was also clear that Nigeria needs to work harder to actualise its recently announced policy response to the current economic challenges.
Other oil producing countries including Saudi Arabia, have also been put on negative watch, while Kazakhstan, Bahrain and Oman were downgraded.
In March 2014, S&P had revised its outlook on Nigeria’s sovereign credit to negative from credit watch negative.
It had attributed its decision for the downgrade to the continued infighting within the country’s ruling political party, which it stated had heightened political and institutional risks in the country.