Fitch lifts Lagos to positive

Fitch Ratings said it revised the outlook on the Nigerian state of Lagos's national long-term rating to positive from stable and affirmed it at AA(nga).

The agency also affirmed the long-term foreign- and local-currency ratings at BB-, short-term foreign-currency rating at B and the long-term ratings of the 50 billion in Nigerian naira due in 2014 at BB- and 57.5 billion in Nigerian naira bonds due in 2017 at AA(nga).

The outlook revision reflects the state's increasing sophistication in management reflected by improving transparency and debt management amid moves towards a balanced budget by 2015, Fitch said.

A growing proportion of bond issues with fixed-repayment schedules, longer maturities and monthly provisions into the debt-reserves fund are replacing the traditional concentration of short-term bank loans, the agency said.

Fitch said it views this as a sign of the state's improving debt management.

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