Nigeria bonds further plummet as S&P Global begins review
Sopuruchi Onwuka
As another credit rating agency focuses on Nigeria, the country’s sovereign bonds value took a slip at the weekend as the impact of Moody’s negative rating continues to shake investors’ confidence.
Market intelligence services indicated at the weekend that the downgrade of the country’s credit rating by Moody’s will not necessarily guide the upcoming review by S&P Global which uses criteria different set of induces.
Players in the bond market reported that Nigeria’s dollar-denominated government bonds fell by significant 2.659 cents in the dollar, with the 2038 maturity falling the most, down to 69.189 cents.
According to Tradeweb data, the Nigerian bonds had been on the slide for two straight days in a row following a mix of global risk-off sentiment and the Moody’s downgrade of the country’s rating.
The price federal government bonds for maturity in 2038, it was gathered tumbled by 68.528 cents and fluctuated up to 73.375 cents before Friday’s drop.
Minister of Finace, Zainab Ahmed, had disagreed with 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.”
