GCR assigns AA+, A1+ credit ratings to Dangote Industries over 'robust earnings expectation'

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GCR Ratings (GCR), an affiliate of Moody's, has graded Dangote Industries Limited (DIL) with the national scale long-term and short-term issuer ratings of AA+(NG) and A1+(NG) respectively.

GCR Ratings , an affiliate of Moody’s, has graded Dangote Industries Limited with the national scale long-term and short-term issuer ratings of AA+ and A1+ respectively.

“The ratings are constrained by the adverse impact of the currency devaluation on the profitability and financial position of the group, given its significant foreign debt exposure. “The non-oil businesses continue to demonstrate strong earnings-generating capacity and market leaderships in their respective sectors, underpinned by the above-peer production capacities and favourable demographics.

“The downgrade reflects significant deterioration in the group’s liquidity position following lower than expected disposal proceeds, operational and financial underperformance compared to our prior expectations, also affected by local currency devaluation, and lack of contracted backup funding to repay its significant debt facilities maturing on 31 August 2024,” Fitch said.Advertisement

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