Nigeria’s dollar-denominated government bonds slump ahead of S&P credit rating review


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Nigeria’s dollar-denominated government bonds fell on Friday ahead of a review of its credit rating by S&P Global, after the West African oil producer was downgraded by another ratings agency, Moody’s, a week earlier.

Nigeria’s bonds dropped as much as 2.659 cents in the dollar, with the 2038 maturity falling the most, down to 69.189 cents, according to Tradeweb data .

The bonds had fallen for two days in a row thanks to a combination of global risk-off sentiment and the Moody’s downgrade, with the 2038 maturity’s price falling as low as 68.528 cents. It then recovered to as high as 73.375 cents before Friday’s drop.

Nigeria’s finance minister Zainab Ahmed said on Thursday she disagreed with what she said was a “surprise” downgrade by Moody’s, saying that the government was addressing the agency’s concerns, which included a deteriorating fiscal and debt position.

She said she expected S&P’s rating review would be more positive, adding, “S&P’s assessment is not the same as Moody’s. They have come out with a much better assessment.”

Godwin Okafor
Godwin Okafor
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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