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Abdulfatah Ahmed
Abdulfatah Ahmed
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Governor explains why Kwara withdrew from Fitch (Video)
Kwara State Governor - Alhaji Abdulfatah Ahmed explains why the State decided to step down its participation in the Fitch Ratings.
The Governor said the State had requested a Fitch Rating as a prelude to raising funds from the Capital market in 2008/9 and to benchmark against best practices in financial management.
According to Ahmed, Kwara State which was the first State in the country to be rated by Fitch, no longer needed the annual rating for its transactions - insisting that the State joined for specific transactional purposes.
Kwara State Governor - Alhaji Abdulfatah Ahmed has denied that the withdrawal of the State from the internationally acclaimed Fitch Ratings is an indication of the State's poor financial state.
According to Ahmed, Kwara State which was the first State in the country to be rated by Fitch, no longer needed the annual rating for its transactions - insisting that the State joined for specific transactional purposes.
The Governor said the State had requested a Fitch Rating as a prelude to raising funds from the Capital market in 2008/9 and to benchmark against best practices in financial management.
“We decided, as a State when we were going to issue a bond in the capital market, to explore the possibility of not only accessing the Capital market but also showcasing ourselves to the world as bench marking against best practices,” he explained.
“If you want to continue to be rated, you pay for it and continue to submit data which will be analysed. We did it up until last year. We now feel that since we don’t have any major thing we require the rating results for now, we can step it down this year,” Ahmed said.
“For those who don’t understand, it has nothing to do with our efficiency as a government,” he said.
Fitch Ratings is a global rating agency dedicated to providing value beyond the rating through objective and balanced credit opinions, research and data. Offering a world of knowledge and experience behind every rating, it transforms information to deliver meaning and utility to investors, issuers and other market participants. The additional context, perspective and insights it provides helps financial professionals make important business decisions with confidence.