Fitch revises Benue’s Outlook to positive

Posted on 1 August, 2024 by Administrator

Vanguard News

July 31, 2024

Fitch revises Benue’s Outlook to positive

By Peter Duru, Makurdi

The international credit rating agency, Fitch has revised the Outlook on Benue State’s Long-Term Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at ‘B-‘.

Fitch has also revised the Outlook on Benue’s National Long-Term Rating to Positive from Stable and affirmed the rating at ‘A-(nga)’.

The Managing Director of Benue Investment and Property Company, BIPC, Dr. Raymond Asemakaha who made this known in a statement Wednesday in Makurdi explained that “the revision of the Outlooks reflects Benue’s improved fiscal performance in all indicators. Its IDRs are aligned with Nigeria’s (B-/Positive). The ‘b-‘ Standalone Credit Profile (SCP) reflects Benue’s volatile operating balance and rising adjusted.”

He pointed out that the rating reflected Fitch’s assessment of the state’s creditworthiness and highlights its ability to meet its financial obligations.

He said: “Benue State is honored to receive this international recognition from a reputable credit rating agency like Fitch Ratings. This acknowledgement stands as a testament to the deliberate commitment of Governor of Benue State, Rev. Fr. Hyacinth Alia to implementing sound fiscal policies, promoting transparency, and fostering economic growth.

“The ‘A-‘ rating grade, offers numerous benefits and opportunities for Benue State, potential investors, and the Nigerian economy as a whole. This rating indicates an acceptable level of creditworthiness, which can be vital in attracting investments, encouraging economic development, and building sustainable partnerships.

“For Benue State, this Fitch rating will facilitate access to global capital markets, allowing us to secure funding for infrastructure projects, social welfare initiatives, and other developmental programs. It will promote investor confidence and bolster our efforts to diversify the economy, create jobs, and improve the standard of living for our citizens.

“Furthermore, this rating serves as a clear sign of the state’s prudent financial management, fiscal discipline, and transparency, which are essential elements for any entity seeking to attract investments. As we continue to prioritize sustainable economic growth, this rating reassures potential investors of our commitment to a favorable investment environment.

“On a broader scale, a positive rating for Benue State reflects positively on Nigeria’s overall investment climate. It demonstrates the potential and opportunities that exist within the nation, highlighting the government’s commitment to economic stability and development across all levels – federal, state, and local.

“Benue State acknowledges the trust bestowed upon us by Fitch Ratings and pledges to build upon this rating as we strive for continuous improvement. We remain committed to attract domestic and international investors, foster public-private partnerships, and create an enabling environment for economic growth, job creation, and poverty reduction.

“As we move forward, Benue State stands ready to explore new possibilities, implement progressive policies, and work hand-in-hand with our stakeholders to maximize the advantages offered by this Fitch rating. We welcome investors, partners, and individuals who share our vision of a prosperous and inclusive Benue State and Nigeria.”