Rivers State has again been affirmed a ‘B’ international rating by leading International  financial analysis agency, Standard and Poor’s (S & P) in a report released.

The long-term outlook for the state was revised upwards from last year rating of “Stable” to “Positive” on the strength of significant ongoing infrastructural investments (in roads, ICT, healthcare, education and urban renewal) and relentless efforts to transform the public finance framework. This will help lift the state’s social and economic status in the long run.

The agency in its 2010 credit analysis report on Rivers State, noted that the state currently has a high credit quality owing to its strong cash holdings, low debt and a healthy operating balance and more importantly, the state’s efforts towards modernizing public sector administration, which includes information technology upgrade and an improved transparency and accountability administration.

S & P also noted that Rivers State has a strong liquidity base with no substantial debt burden.

“As of July 2010, Rivers States continued to enjoy a very comfortable liquidity position. It had N43.9 billion in local currency and $11 million. By this overview, cash holdings in the state at the end of 2010 should be at around N50 billion, based on Standard and Poor’s capex assumption of N200 billion,” said the report.

“A very substantial part of Nigeria’s natural gas deposits and, to a smaller extent, crude oil production, is located in Rivers State. Major operators in the state include the main multinational oil companies, which are accompanied by a cluster of private local companies and these oil-related activities bolster sustainable employment in the long run, as evidenced by per capita GDP, that is triple the domestic average and, thus, form a relatively solid tax base,” it said.

The report revealed that even if Rivers State taps into the Nigerian capital market for N100 billion accompanied by a direct debt-service via an ISPO (irrevocable standing payment order) being withdrawn at source from the state’s statutory allocation, it will still maintain a comfortable liquidity position.

There is also the indication that internally generated revenue would steadily and substantially grow plus the expectation that the state will continue to post excellent operating surpluses in 2010-2012; self-finance a large part of its programmed investments and continue to enjoy a strong assets base.

Rivers State remains the first and only state in Nigeria with dual international credit rating. A rating opinion by Fitch Agency is awaited later in the year.

Commenting on the report, Governor Rotimi Amaechi’s senior adviser on media and publicity, Mr. David Iyofor said that the Governor is just seeing the report released Monday and would study it closely.

Iyofor affirms that Govenor Amaechi considers such independent financial opinion as very crucial guideline for continuing the modernization of its governance standard, in order to firmly entrench accountability and information transparency, while strengthening public finance operating framework.

Last year, going by the development efforts put in by the Rotimi Amaechi led government and its proven prudence in financial management, Standard and Poor”s gave Rivers State a ‘B’ long-term credit rating indicating a stable outlook, while another internationally renowned credit rating agency Fitch rated the State  B+ with “Stable” long term financial outlook and A- for domestic rating.