On Friday, Nigeria’s government bonds denominated in dollars declined ahead of credit rating evaluation by S&P Global following a downgrade by Moody’s.
Nigeria’s bonds experienced a significant drop of as much as 2.659 cents per dollar, with the 2038 maturity being the most affected, falling to 69.189 cents, according to Tradeweb data. The 2038 maturity’s price plummeted to 68.528 cents before rebounding to 73.375 cents before Friday’s decrease.
This decline was due to a worldwide trend towards reducing risk and Moody’s downgrade.
However, Nigeria’s Finance Minister, Zainab Ahmed, expressed her disagreement with the “surprising” downgrade by Moody’s, stating that the government was taking steps to address the agency’s concerns regarding the worsening fiscal and debt situation.
Additionally, she expressed hope for a more positive outcome from S&P’s rating review, as she stated that “S&P’s assessment is not the same as Moody’s” and that “they have come out with a much better assessment.”
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