Fitch rates Nigeria bonds BB

Fitch Ratings said it assigned BB- long-term foreign and local currency issuer default ratings, a B short-term rating and a BB- country ceiling to the Federal Republic of Nigeria and a BB rating to the so-called "Brady" Par bond maturing in 2020, reflecting the value of U.S. Treasury bonds that provide collateral against the principal value of the bond.

The outlook is stable.

Nigeria's ratings are underpinned by the current government's strong commitment to economic reform, including measures to improve governance, tackle corruption, accelerate privatization and rationalize the banking system, the agency said. Fitch noted the establishment of an oil price-based fiscal rule whereby all oil revenues above a reference price ($33 per barrel for 2006) are deposited into an Excess Revenue Account at the Central Bank of Nigeria.

Fitch said that Nigeria's sovereign ratings are constrained, however, by the legacy of decades of political misrule and economic mismanagement. Nigeria has one of the lowest levels of GDP per capita of any country that is rated BB- or above by the agency, a testament to the economic, social and political challenges it faces.

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