Sunday, March 11, 2012

Fitch revises Akwa Ibom State's outlook to positive

6 March 2012

Fitch Ratings has revised the Outlook on Akwa Ibom (AK) state's Long-Term foreign and local currency ratings to Positive from Stable and affirmed the ratings at 'B+'. The rating agency has simultaneously affirmed the National Rating at 'AA-(nga)', with Stable Outlook.

The Outlook revision reflects the subsiding restiveness in the Niger Delta region and buoyant market oil prices resulting in resilient oil-related revenues offsetting growing operating costs amid weak socio-economic indicators by international standards.

The ratings could be upgraded if budgetary performance remains strong, in line with Fitch's expectations and improving financial disclosure. Budgetary performances weakening beyond Fitch's expectations and/or a resurgence of local unrest undermining oil-revenue generation could lead to a revision of the Outlook to Stable or a downgrade.

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