Global ratings agency, S&P has downgraded Nigeria deeper into junk territory as the fall in global oil price takes a toll on oil exporting countries.
In the ratings released yesterday, Nigeria and other oil exporting countries, including Angola, Mexico, Ecuador and Oman, saw ratings cuts. Saudi Arabia and Russia were, however, spared.
Nigeria was downgraded to B-, Mexico to BBB, leaving it just two cuts from junk, Colombia is now just one step away, while Angola and Ecuador were both chopped into the CCC default danger zone.
“We have lowered the ratings or assigned a negative outlook on some sovereigns because of their heightened risk to manage the fiscal and external shock resulting from lower (oil) prices in addition to the blow to economic growth as a result of the pandemic,” the agency said.