Fitch Revises Lagos's Outlook to Stable on Sovereign Action; Affirms at 'B'

Following the recent revision of the Outlook on Nigeria’s IDRs (see Fitch Revises Nigeria’s Outlook to Stable, Affirms at ‘B’ dated 30 September 2020 on www.fitchratings.com), we have taken similar rating action on Lagos as it is rated at the same level as the sovereign and its Outlooks move in tandem with those on the sovereign.

While Nigerian local and regional governments’ (LRG) most recently available issuer data may not have indicated performance impairment, material changes in revenue and cost profiles are occurring across the sector and likely to worsen in the coming weeks and months as economic activity suffers and government restrictions are maintained or broadened. Fitch’s ratings are forward-looking in nature, and we will monitor developments in the sector for their severity and duration, and incorporate revised base- and rating-case qualitative and quantitative inputs based on performance expectations and assessment of key risks.

The next scheduled review date for Lagos will take place in 2021.