Beyond statutory requirement, the ratings serves to ensure sustained investors confidence (both existing and potential) in the State’s economic viability. The State engaged the services of an International Rating Organisation (Fitch Rating Agency). Assign ratings to the state, as an issuer and its bonds since the inception of the Bond Issuance Programme in Year 2013, with the following assigned ratings;
RATINGS
5 YEAR RATINGS OF FITCH RATING AGENCY TO THE STATE
| RATING CRITERIA | 2016/2017
RATINGS (1) |
2017/2018
RATINGS (2) |
2018/2019
RATINGS (3) |
2019/2020
RATINGS (4) |
2020/2021
RATINGS (5) |
| Foreign Currency | B+ | B+ | B+ | B+ | B |
| Short Term Rating | B | B | B | B | B |
| Local Currency | B+ | B+ | B+ | B+ | B |
| National Currency | AA+(nga) | AA+(nga) | AA+(nga) | AA+(nga) | AAA(nga) |
| OUTLOOK | |||||
| Long Term Foreign Currency | Negative | Negative | Negative | Negative | Stable |
| Long Term Local Currency | Negative | Negative | Stable | Negative | Stable |
| National Long Term Rating | Stable | Stable | Stable | Negative | Stable |
Source: Debt Management Office, 2021
The Local Rating Agencies, Agusto & Co. Ltd and Global Credit Rating, have satisfactorily rated the State and it’s Bonds annually since the inception of the Bond programme, latest being 2020/2021 rating reports as follows;
5 YEAR GCR ISSUER AND BOND RATING
| RATING AGENCY | 2016/2017 | 2017/ 2018 | 2018/2019 | 2019/2020 | 2020/2021 |
| ISSUER | A+ STABLE | A+ STABLE | A+ RATING WATCH | A+ STABLE | A+ STABLE |
| N38.8BLLION BOND | AA-STABLE | AA-STABLE | A+ RATING WATCH | A+ STABLE | A+ STABLE |
| N5.3BILLION BOND | AA-STABLE | AA-STABLE | A+ RATING WATCH | A+ STABLE | A+ STABLE |
| N100BILLION BOND | A+ STABLE | A+ STABLE | |||
Source: Debt Management Office, 2021
5 YEAR AGUSTO ISSUER AND BOND RATING
| ISSUER
|
2017 | 2018 | 2019 | 2020 | 2021 |
| A+ STABLE | A+ STABLE | A+ STABLE | A+ STABLE | A+ STABLE | |
| N38.8BILLION BOND | AA- STABLE | AA- STABLE | AA- STABLE | AA- STABLE | |
| N5.3BILLION BOND | AA- STABLE | AA- STABLE | AA- STABLE | AA-STABLE | |
| 100 BILLION BOND | A+ POSITIVE | A+ POSITIVE |
Source: Debt Management Office, 2021
NOTE:
N47BILLION Bond 16.5% 7 Year was issued in December, 2016 and fully redeemed in June 2021 (P3S1)
N87.5BILLION Bond 13.5% 7 Year was issued in November, 2013 and fully redeemed in November 2020 (P2S2)
N97.387BILLION Bond
- N46.37BILLION 16.75% 7 Year was issued in August, 2017 and fully redeemed in February 2021 (P3S2T1)
- N38.77BILLION Bond 17.25% 10 Year was issued in August, 2017 (P3S2T1)
- N6.911BILLION Bond 15.60% 7 Year was issued in January, 2018 and fully redeemed in February 2021 (P3S2T3)
- N5.336BILLION Bond 15.85% 10 Year was issued in January, 2018 (P3S2T4)
N100BILLION Bond 12.25% 10 Year was issued in January, 2020
