By Dipo Olowookere

Fitch has announced placing a ‘B+(EXP)’ rating on the $2.5 Eurobonds issuance by the Nigerian government in the coming days.

Last week, precisely on Tuesday, the Senate approved a request by President Muhammadu to seek foreign loan of $5.5 billion, part of which is the $2.5 billion Eurobonds issuance.

The $2.5 billion Eurobond is to finance the 2017 budget, while the $3 billion is to refinance domestic debts.

Last Wednesday, Fitch, in a statement, announced its rating on the Nigeria’s upcoming senior unsecured USD-denominated notes.

The rating firm explained that the assignment of the final ratings was contingent on the receipt of final documents materially conforming to information already reviewed.

In the statement, Fitch said, “The expected rating is in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’ with a Negative Outlook.

“The rating is sensitive to any changes in Nigeria’s Long-Term Foreign-Currency IDR.

“On 31 August 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.”