Fitch Withdraws All Ratings for Dangote Industries
Fitch Ratings has withdrawn Dangote Industries Limited’s (Dangote) National Long-Term Rating and senior unsecured rating of ‘B+ (nga)’, while maintaining them on Rating Watch Negative (RWN).
The international rating agency stated that the negative rating watch on the group it recently assigned remains unresolved because of the pending refinancing of the company’s maturing debt.
“Fitch will no longer provide ratings or analytical coverage for Dangote and has withdrawn them for commercial reasons.” Dangote is a conglomerate based in Nigeria and West Africa. Its key business segments are cement, fertilizer, oil refining, and food.
Dangote Industries Limited spokesperson Anthony Chiejina told MarketForces Africa that the group did not renew its contract with Fitch Ratings for 2025. The global ratings agency has been heavy on Dangote Industries Limited in its latest assessment.
Fitch is of the view that the group’s excess leverage raised default risk. From at ‘AA(nga)’ in Aug 2023, Dangote Industries Limited’s issuer rating has been dropped to B+ as of August 2024 and is now placed on negative watch.
The rating downgrade, according to Fitch, reflects significant deterioration in the group’s liquidity position following lower-than-expected disposal proceeds and operational and financial underperformance.
Fitch maintained that the RWN reflects uncertainty related to the group’s ability to refinance maturing debt. #Fitch Withdraws All Ratings for Dangote Industries CBN Opens FX Window for BDC to Stock up at NFEM Rate
