Fitch affirms Kwara

Fitch Ratings said it affirmed the Nigerian State of Kwara's long-term foreign- and local-currency ratings at B+ and national long-term rating at AA-(nga). The agency also said it assigned its upcoming NGN17 billion five-year bullet bond expected long-term local-currency B+ and national long-term AA-(nga) ratings.

The bond proceeds will be used to finance investments. The final ratings are contingent upon the receipt of final documents.

The outlook is stable.

The ratings reflect Kwara's good budgetary performance and low, but rising, debt amid growing infrastructure investments to develop the local economy, Fitch said.

The ratings also take into account Kwara's prudent budget management which, together with gradually increasing tax autonomy, will help mitigate the expected decline in the operating surplus in 2009 due to lower oil-related federal allocations, the agency said.

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