As of the beginning of the second quarter, Standard & Poor’s credit rating for Nigeria stands at BB- this is a reduction from the B+ outlook last reported in the first quarter. Fitch’s credit rating remains at BB-.
However, the TE (Trading Economics) Rating as of April 16, 2016 is stable.
In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of the country, thus having a big impact on the country’s borrowing costs.
Nigeria’s credit rating could be upgraded after mid-term and long-term stability of politics in the country and stability in crude oil prices, the country’s main exportation mechanism.
A successful implementation of Nigeria’s political program elements like the 2016 budget would probably contribute to enhancing its compressed dynamics for investment and growth.