Fitch rates Kaduna region B

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of B and national long-term rating of A+(nga) to Nigeria's Kaduna state.

The outlook is stable.

The B ratings reflect Kaduna's dwindling revenue prospects in line with declining statutory allocations from the central government as a result of weak oil prices, Fitch said.

Oil-related revenues account for 70% of Nigeria's current external receipts and Kaduna's current revenue, the agency explained.

The ratings also consider the region's fast growing debt, although servicing requirements will be moderated by government subsidies, concessionary terms and a long grace period, Fitch said.

The ratings further reflect the state's developing economy focused on agricultural activities and low per capita revenue by international standards, the agency said.

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