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US rating firm puts Lagos credit status for 2021 under review

By Monsurudeen Olowoopejo

A United States (US) credit rating agency, Fitch Ratings Inc, has initiated the process of reviewing Lagos State’s credit ratings for Y2021, to ascertain its true financial status.

The credit rating would either put the state where it was in the previous year, B+ (stable), or raise its bar beyond, indicating the actual credit rating of the state.

Confirming the ongoing rating exercise, the Permanent Secretary, Debt Management Office (DMO), Olujimi Ige, disclosed that Fitch has requested a discussion with the state government on preliminary data for Y2021 with a prospect for a favourable rating.

The permanent secretary,  in a statement made available to newsmen on Saturday, described the Lagos State Government as a responsible issuer and player in the Nigerian Capital Market.

According to him, there is no doubt that Lagos State is financially responsible and this is underscored by its high credit ratings, nationally and internationally.

To argue further, the DMO boss added that the State’s Fitch Rating for Y2018 was B+ (Stable), Y2019 was B+ (Negative) while Y2020 was B+ (stable).

Ige said that outcome of the ongoing review would further prove to the world that Lagos remains the destination for any investor aiming to achieve his dream in business.

He assured residents of Lagos and financial institutions that the state government would never stop servicing its debts as agreed upon before receiving the funds.

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