Fitch Ratings has increased its Nigerian Lagos State’s National Long-term from AA(nga)’ to ‘AA+(nga)’. It also upgraded Lagos State’s Long-term foreign and local currency Issuer Default Ratings (IDRs) from ‘B’ to ‘BB-‘.
The upgrades represent that Lagos’s outlook is stable.
Its N275bn MTN programme, including its N57.5bn and N80bn bonds have been affirmed at ‘BB-‘ and upgraded to ‘AA+(nga)’.
A strong robust Lagos economy
The upgrade went into effect because of the areas impressive operating performance and the promise of a growing private sector.
Lagos has a GDP that accounts for up to a quarter of the Nigerian economy, an impressive feat given that Lagos is the smallest state in Nigeria.
Lagos’ socio-economic indicators will continue to improve as its GDP is predicted to outperform the national GDP growth of 7-8% in 2014.