Fitch Ratings has confirmed the long-term default rating of foreign and local currency (IDR) issuers in the Nigerian state of Kaduna to “B” with a stable outlook.

FITCH assesses Kaduna's autonomous credit profile (SCP) at “B”, reflecting the combination of a “vulnerable” risk profile and sustainability measures of debt in the “bb” category in its rating scenario. The ratings reflect the continued high, but declining, dependence of Kaduna's revenues on central government transfers despite the increase in internally generated income (IGR). The ratings also take into account the State's increasing debt to finance the investments needed to develop basic infrastructure and social services. Kaduna's IDRs are aligned with those of the Nigerian sovereign and no other rating factors apply to the ratings.