Fitch Ratings downgraded its assessment of Dangote Industries Ltd.’s creditworthiness, citing factors including a “significant deterioration in the group’s liquidity position following lower-than-expected disposal proceeds,” and placed its ratings on a negative watch.
It lowered the company’s national long-term rating to B+(nga) from AA(nga), the Fitch said in a report on Tuesday.
The ratings of the corporation owned by Africa’s richest person, Aliko Dangote, were also hampered by “local-currency devaluation and lack of contracted backup funding to repay its significant debt facilities maturing on August 31,” Fitch said.
It cautioned that a “lack of tangible steps to refinance or repay the maturing debt would lead to further downgrade.”
Meanwhile in another rating, GCR Ratings affirmed the national scale long-term and short-term issuer ratings of AA+(NG) and A1+(NG) respectively accorded to Dangote Industries Limited.
GCR in its recent report also affirmed the national scale long-term issue rating of AA+(NG) accorded to each of Dangote Industries Funding Plc Series 1 NGN10.5Bn Tranche A and NGN177.1Bn Tranche B Bonds and Series 2 NGN112.4Bn Senior Unsecured Bond.
The outlook on the ratings has been revised to Evolve from Stable previously.
According to GCR, “the ratings were affirmed on the prospects of significant growth in earnings following the commencement of operations at the new petrochemical refinery and robust earnings expectation from the other businesses.”
