Fitch cuts Bayelsa to B

Fitch Ratings said it downgraded the state of Bayelsa's international long-term foreign- and local-currency ratings to B from B+ and national long term rating to A-(nga) from A+(nga).

The ratings were placed on Rating Watch negative.

The downgrade reflects risks to Bayelsa's operational management as key government officials, mainly in the accounting and treasury departments, are no longer in office while facing legal proceedings for alleged fraud, Fitch said. The negative watch reflects concerns about the reliability of financial information as a result of the ongoing investigation, the agency added.

Fitch said it expects to resolve the watch once there is clarity surrounding Bayelsa's budgetary and financial information.

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