Global rating agency, Fitch Rating, last week  withdrew its rating of Kwara State, canceling its rating of the state’s N17 billion bond programme. The rating agency, however, upgraded the rating of Lagos State, raising it to positive from stable.

According to a statement by Fitch, it withdrew Kwara’s Long-Term foreign and local currency ratings of ‘B+’ and Long-Term National Rating of ‘AA-(nga)’with Stable Outlooks, due to the State’s decision to stop participating in the rating process.

It further stated that it has simultaneously withdrawn the Long-term ratings of ‘B+’ and ‘AA-(nga)’ on the N17 billion bond maturing in 2014.

“The withdrawal follows Kwara’s decision to stop participating in the rating process. Fitch will no longer provide ratings or analytical coverage of Kwara State,” Fitch stated.

On its rating of Lagos, Fitch said the upgrade is  as a result of the State’s improving debt management and moves toward a balanced budget by 2015.

It said, “Increasingly, bonds with fixed repayment schedules, longer maturities and monthly provisions into the debt reserves fund, are replacing the traditional concentration of short-term bank loans for the state that includes the country’s commercial capital. Fitch views this as a sign of the state’s improving debt management.”

Lagos state sold N80 billion ($505 million) of debt in November, its third and biggest issue in six years, to fund developments including an urban rail system that needs about $1 billion to complete. The seven-year notes were priced with a 14.5 percent coupon.

With an estimated population of 20 million, Lagos is the top contributor to the economy out of Nigeria’s 36 states and may grow 10 per cent this year, according to Fitch. Tax contributions to revenue may reach 80 percent in 2015 from 70 percent due to improved collection.