Fitch Ratings has announced the withdrawal of Dangote Industries Limited’s National Long-Term Rating and senior unsecured rating of ‘B+(nga)’ due to unresolved debt refinancing concerns.
The withdrawal effective February 11, 2025 means that Fitch will no longer provide ratings or analytical coverage for the company. The rating agency cited commercial reasons for the decision.
According to Fitch, the Rating Watch Negative was not resolved because Dangote Industries has yet to refinance its maturing debt.
The unresolved debt issue continues to pose uncertainty over the company’s credit outlook.
“The RWN was not resolved due to 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 Fitch will no longer provide ratings or analytical coverage for Dangote and has withdrawn them for commercial reasons,” the agency stated.
Fitch also confirmed that key rating drivers and rating sensitivities are no longer applicable, given that the ratings have been withdrawn.
Market Implications:
The withdrawal of Dangote’s ratings by Fitch comes amid heightened scrutiny of the company’s debt profile, particularly following the completion of the $23 billion Dangote Refinery project.
The refinery is expected to reduce Nigeria’s dependence on imported fuel and boost the company’s revenue streams.
However, concerns over the company’s debt servicing capability persist.
Outlook and Industry Impact:
Analysts suggest that the unresolved debt refinancing could pressure Dangote Industries to seek alternative funding arrangements. Meanwhile, the company’s diversified operations, including its market-leading position in cement and fertilizer production, remain strong buffers against potential financial strain.
Despite the withdrawal of Fitch’s ratings, investors are expected to closely monitor Dangote Industries’ next moves regarding its debt restructuring and overall financial health.
