Fitch Ratings has assigned Nigeria’s $300m Diaspora Bond ‘B+(EXP)’ indicating that the relative stability in the foreign exchange market with reversal of the slide in gross domestic products, GDP, did not reflect in the expectations for the bond offer.

The rating agency added that the rating is in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’. The rating agency had issued a negative outlook on the IDR of the country.

According to Fitch, the rating is sensitive to changes in Nigeria’s Long-Term Foreign-Currency IDR. On 24 January 2017, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ and revised the Outlook to Negative. The Long-Term Local-Currency IDR was also affirmed at ‘B+’ with a Negative Outlook.

Earlier in the year, Fitch had assigned B+ ratings to Nigeria’s $1 billion Eurobond which was eventually oversubscribed. A B+ rating is usually the lowest investment grade rating assigned to a security which signifies that the issuer (Nigeria) has a moderate chance of default. However, some analysts believe that a deeper assessment shows the concerns foreign investors have about the country’s macro-economic and foreign exchange policies.

While the Central Bank of Nigeria has been able to keep rates steady by ensuring liquidity in the foreign exchange market, some analysts express worry that another falling global oil price will take the country back to fighting the forex challenge it faced last year and early this year.

Recall that on January 24, 2017, Fitch affirmed Nigeria’s long-term foreign-currency IDR at ‘B+’ and revised the outlook to negative from stable. The long-term local-currency IDR was also ‘B+’ with a negative outlook, all reflecting the trepid foreign exchange market and sustained recessionary pressures.