(Ecofin Agency) – The Fitch Ratings agency announced on March 30 in a statement, have downgraded the outlook of the sovereign rating of Nigeria (‘BB- / BB “) to negative from stable, due to the fall in oil prices and security risks associated with Boko Haram Islamist insurgents.
” Heavy dependence on revenues oil will cause degradation of the country’s external position “the agency said, noting that the Nigeria derives 60% of its revenue from black gold.
Fitch expects in this context that the funds from reserves oil will be in deficit this year, for the first time since 1998, and she expects a “ modest surplus ” in 2016.
The falling price of oil, which has lost half of its value since the summer of 2014, combined with the devaluation of the Nigerian currency in November, also weighs the non-oil growth is projected at 5.5% in 2015 against 7.4% in 2014.
Fitch also provides for inflation “ two digit “for the first time since 2012 in Nigeria.
Standard and Poor’s had placed the note “ BB – “Nigeria negative watch on Feb. 10 for the same reasons, anticipating” a current account deficit of 1.4% of GDP in 2015-2018 . “
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09/23/2014 – S & amp; P confirmed the rating of Nigeria to ‘BB- / B’ with a negative outlook
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