Wizdray:
What's Moody?

Moody’s Investors Service, better known as Moody’s, has finally downgraded Nigeria’s long-term issuer ratings from Ba3 to B1.

B1, B2 and B3 are judged to “have speculative elements and a significant credit risk”, while Ba1, Ba2 and Ba3 are seen as “speculative and a high credit risk”.

Moody’s has also assigned a stable outlook after concluding the review for downgrade initiated in March 2016.

yinchar:
Let Moody keep their rating, by the time the budget is signed and money is pumped into the economy, they will lick their ass then....

I know it will all turn around for good before the end of this year....

I BELIEVE...

God bless PMB

yinchar:
Let Moody keep their rating, by the time the budget is signed and money is pumped into the economy, they will lick their ass then....

I know it will all turn around for good before the end of this year....

I BELIEVE...

God bless PMB

lalasticlala:




https://www.thecable.ng/moodys-finally-downgrades-nigeria

surestsam:
still reading.... Trying to understand..

735i:
In a nutshell.....
It'll be more expensive for us to borrow as a country....
Reflects a worsening economic environment...
Basically a result of our dependence on crude oil and the fact that our 2016 budget still depends on revenues from crude oil.....

yinchar:
Let Moody keep their rating, by the time the budget is signed and money is pumped into the economy, they will lick their ass then....

I know it will all turn around for good before the end of this year....

I BELIEVE...

God bless PMB

735i:
In a nutshell.....
It'll be more expensive for us to borrow as a country....
Reflects a worsening economic environment...
Basically a result of our dependence on crude oil and the fact that our 2016 budget still depends on revenues from crude oil.....

bookface:
Here is a simple explanation.

Imagine that both you and Dangote - approach a bank to borrow some funds. You bank manager is likely to attend to Dangote first because he is deemed to have low credit risk, by contrast you are deemed to have a high credit risk, because you be "I never chop". Additionally, you manager will probably charge Dangote 2% interest, while they charge you 25% interest.

The same thing here - when a country is in good and sound economic position, that country is deemed to have good fundamentals and low credit risk and therefore has a good credit rating. Therefore when the country approach international bond markets to borrow money, the cost is lower. If the Nigerian government wants to borrow money in the bond markets for 10 years as of today, it would cost the government about in 15% interest. While a country like the UK government will probably pay 0.5%. As a matter of fact, a country like japan currently have negative interest rates. i.e you pay the Japanese government to lend them money.

The best rating a country can have is Aaa, while the worst rating is a D. Countries with good ratings may sometimes have their currencies considered as safe-haven currency for example US dollar and Swiss franc . Although that may not always be the case, for example in a place like Australia or Canada due to their exposure to commodity prices.

Anyway, the effect of this downgrade is likely not going to be anything drastic as the market as already priced all of this in. The medium/ longer term effect is increased cost of borrowing and a downward pressure on exchange rates.

bookface:
Here is a simple explanation.

Imagine that both you and Dangote - approach a bank to borrow some funds. You bank manager is likely to attend to Dangote first because he is deemed to have low credit risk, by contrast you are deemed to have a high credit risk, because you be "I never chop". Additionally, you manager will probably charge Dangote 2% interest, while they charge you 25% interest.

The same thing here - when a country is in good and sound economic position, that country is deemed to have good fundamentals and low credit risk and therefore has a good credit rating. Therefore when the country approach international bond markets to borrow money, the cost is lower. If the Nigerian government wants to borrow money in the bond markets for 10 years as of today, it would cost the government about in 15% interest. While a country like the UK government will probably pay 0.5%. As a matter of fact, a country like japan currently have negative interest rates. i.e you pay the Japanese government to lend them money.

The best rating a country can have is Aaa, while the worst rating is a D. Countries with good ratings may sometimes have their currencies considered as safe-haven currency for example US dollar and Swiss franc . Although that may not always be the case, for example in a place like Australia or Canada due to their exposure to commodity prices.

Anyway, the effect of this downgrade is likely not going to be anything drastic as the market as already priced all of this in. The medium/ longer term effect is increased cost of borrowing and a downward pressure on exchange rates.

allexy2:
Am not suprise at this moody rating. It should by now be obvious to nigerian that western countries the brain behind the economic situation we are going through.

Have you wonder why our problem became so bad in 2015


Don't forget that around 2002, America said Nigeria will divide by 2015. Their gaol was to use boko haram to create that division where the north and south will go into civil war. They use boko haram as a guise to make it look like northerners are killing southerners. That way, the south will hit back and civil war will start to the point where both side begin to kill each other.

Unfortunately for the Western countries, the plan did not work becos nigerian army have been able to deal ruthlessly with boko haram.


Have then wonder why western countries are quick to come to send their military to come fight boko haram ? Nigerians, we all need to see the obvious. Even the missing girls is a scam use to make the federal government look weak so that they can can on western countries military to come to nigeria to help.
This is scam to invade nigeria oil just like what they did in Iraq and Libya.
THANK GOD BUHARI AND JOHANTHAN DID NOT ALLOW THEIR MILITARY IN TO NIGERIA.


Since they know the whole game plan did not work, their last resort is to use economic warfare to make nigeria bow to their pressure. This is why you notice lately that attempt have been made to make the NAIRA a worthless currency.how if you may ask me ?

Do you actually think the naira lost its value mainly as a result of low oil demand ? Think about it for a second. There is a conspiracy between saudi and western countries to manipulate oil price.that way, it will affect the value of countries that produce oil. This is a fact.

Ask yourself that, how come America and other western countries that their economy is so bad that the value of their currency became string OVER NIGHT ?
A country that manufacture NOTHING.can someone explain this to me. This is where u k ow that the banking system is a scam. The western countries will always make their currencies very strong. That way, they can print money in exchange for our natural and mineral resources all over Africa. The america dollars is a scam ! It is just a paper.


To complement their evil plans to destroy nigeria, IMF came in few month ago to say they can help nigeria. Thank God buheari did not fall for this. Notice that naiara have now been badly devalued that even IMF is telling us to devalue. This rhis make economic sense ? By now, nigerians show have been suspecting foul play that something is not right.

Fortunately, buhari was smart enough to go meet china for help. The moment IMF saw that, they came in to say they will like to borrow nigeria money . Really ? You will notice that around that time when buhari went to sign some deal with the Chinese, the naira start to gain strength strength again. IMF was not happy about it it becos they know they have been busted.

Now, we are hearing about moody rating. To hell with all of this western countries and their evil organisations.

their main agenda to to create kiosk in the country to a level where we will be force to sell all our resources to western companies. Look at them calling for privatisation of all oil sector, phcn etc. I use to wonder if the nigerian cannot see the scam taking place before their eyes

Nigerian must must be smart to see the obvious

Sunnycliff:
Simply means we are not credit worthy and not a safe haven for investors! More so, we aren't qualified for borrowing on International levels!

BUHARINOMICS AT WORK!

From B we will be graded to C! and when that happens, getting an F will just be visibly clear!!

#pun

phreakabit:
[size=18pt]"judged to have speculative elements and a significant credit risk”[/size]

Buhari well done oh! Even our credit ratings done crash self.