Fitch ups Nigeria to stable

Fitch Ratings said it revised Nigeria's outlook to stable from negative and affirmed its long-term foreign currency issuer default rating at BB- and long-term local currency issuer default rating at BB.

The agency also affirmed the short-term rating at B and country ceiling at BB-.

"The revision of the outlook on Nigeria's ratings to stable from negative reflects an improved outlook for reforms following elections in April and the appointment of a strong economic team," said Veronica Kalema, a director in Fitch's sovereign group.

"In addition, tighter monetary policy and slightly better fiscal discipline have arrested the rapid pace of reserves decline seen in the first three quarters of 2010, which had prompted the negative outlook in October last year.

"The stable outlook anticipates continued reforms progress, a tighter budget for 2012, including progress towards scrapping the petroleum subsidy and making the Nigeria Sovereign Investment Authority, the sovereign wealth fund, operational," she added.

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