International rating agency, Fitch Ratings, has re-rated Nigeria’s $3 billion dollar dual-tranche bond which it launched last week.
In its latest rating released in Monday, Fitch assigned Nigeria’s $1.5 billion 6.500 per cent senior unsecured notes due 28 November 2027 and $1.5 billion 7.625 per cent senior unsecured notes due 28 November 2047 the final rating of ‘B+’.
Fitch said the final rating replaced the expected rating of ‘B+(EXP)’ which it assigned on 15 November 2017.
It said the expected rating was in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’ with a Negative Outlook.
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“The rating is sensitive to any changes in Nigeria’s Long-Term Foreign-Currency IDR.”
On August 31, 2017, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ with a Negative Outlook.
The Long-Term Local-Currency IDR is also ‘B+’ with a Negative Outlook.
The federal government had on Monday November 20, 2017 launched $1.5 billion November 2027 at a yield of 6.50 per cent.
The 10-year notes were initially marketed at 6.75 per cent area.
It also launched the 30-year paper, $1.5 billion November 2047, at a yield of 7.625 per cent.
The bonds were originally marketed at 7.875 per cent area.
The bond is the first 30-year tranche by a sub-Saharan African sovereign, excluding South Africa.