Fitch rates Kwara AA-(nga)

Fitch Ratings said it assigned the Nigerian State of Kwara long-term foreign- and local-currency ratings of B+ and a national long-term rating of AA-(nga). The action affects about NGN13.5 billion of debt currently outstanding and future direct borrowings.

The outlook is stable.

The ratings reflect Kwara's efforts at economic reforms and developing its administrative capacity, low yet rapidly growing economic wealth indicators and GDP, as well as its volatile macroeconomic indicators owing to high dependence on oil sales/prices, Fitch said. The ratings also are supported by Kwara's modest financial debt and its strong budgetary performance, the agency said.

The rating could be upgraded if macroeconomic conditions stabilize, reducing risks of adverse impacts from oil and U.S. price movements, Fitch said.

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