Moody’s projects significant increase in Nigeria’s interest spending by 2024
Moody’s Ratings projects a significant increase in Nigeria’s interest spending, estimating a rise of 1% of GDP in 2024. Tighter monetary conditions and higher interest rates are expected to drive interest spending to consume 36% of government revenue. Moody’s warns of risks to fiscal consolidation due to higher oil subsidies and inflation shock, leading to ever-increasing interest expenses.
Boeing Faces Credit Downgrade Amidst Commercial Struggles
Boeing faces financial challenges as Moody’s downgrades its credit rating due to struggles in the commercial airplanes segment. Quality-control issues, including those with the 737 Max aircraft, have hindered cash flow generation. Despite the downgrade, CEO Dave Calhoun remains optimistic about generating $10 billion in free cash flow by 2025 or 2026. Boeing ended the first quarter with $7.5 billion in cash and short-term securities, with access to $10 billion in undrawn credit for financial flexibility.