Dangote Industries Receives National-Scale Ratings of AA+ and A1+

GCR Ratings has affirmed Dangote Industries Limited with national-scale long-term and short-term issuer ratings of AA+ and A1+, respectively.

This affirmation highlights the company’s robust financial health and its strategic importance to the Nigerian economy.

According to GCR’s recent report, Dangote Industries Funding Plc’s series 1 N10.5 billion tranche A and N177.1 billion tranche B bonds, along with the series 2 N112.4 billion senior unsecured bond, have also been affirmed with a national-scale long-term issue rating of AA+(NG).

However, the outlook on these ratings has been revised from stable to evolving, reflecting the dynamic economic conditions affecting the company.

GCR Ratings highlighted the significant growth in earnings anticipated from Dangote Industries’ new petrochemical refinery, which commenced operations in February 2024.

This refinery, which produces diesel, naphtha, heavy fuel oil, and aviation fuel, is expected to bolster the company’s earnings and diversify its revenue streams.

The rating agency acknowledged the robust earnings expectations from the group’s other businesses, further enhancing its financial profile.

Despite the positive outlook, GCR noted the adverse impact of naira devaluation on Dangote Industries’ profitability and financial position, primarily due to its substantial foreign debt exposure.

The agency emphasized that currency devaluation poses a significant risk to the group’s financial performance, given the volatility in exchange rates.

“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 expectations from the other businesses,” GCR stated.