Morgan Stanley Capital International (MSCI) Inc, a leading provider of critical decision support tools and services for the global investment community has downgraded Nigeria’s market rating.
Morgan Stanley reclassified the country’s rating from Frontier Markets to Standalone Market Status.
The MSCI Frontier Markets Index captures large and mid-cap representation across 29 Frontier Markets (FM) countries. The index includes 199 constituents, covering about 85% of the free float-adjusted market capitalization in each country.
The Standalone Market Status is for newly eligible markets; markets previously not covered by MSCI or markets that were closed to a specific group(s) of investors.
“A reclassification to a Standalone status may occur in the case of severe deterioration in market accessibility or size and liquidity,” Morgan Stanley said on its website.
By implication, each Nigerian security will be deleted from the MSCI Frontier Markets Indexes at a price that is effectively zero. Also, Nigeria has joined countries like Zimbabwe, Botswana, Palestine among others in the same category.
Source: The Whistler