Fitch Maintains Dangote Industries on Rating Watch Negative; Withdraws All Ratings
Thank you for reading this post, don't forget to subscribe!February 18 2025 – 2:36 PM ET
Fitch Ratings has withdrawn the National Long-Term Rating and senior unsecured rating of ‘B+(nga)’ for Dangote Industries Limited (Dangote), while keeping the company on Rating Watch Negative (RWN). This decision comes as the company continues to face challenges in refinancing its maturing debt, a key factor contributing to the unresolved RWN.
The withdrawal of ratings is driven by Fitch’s decision to cease providing ratings or analytical coverage for Dangote due to commercial reasons. This means the company’s credit ratings will no longer be monitored by Fitch, though the ratings remain on RWN.
Key Rating Drivers & Sensitivities
As the ratings have been withdrawn, no key rating drivers or sensitivities are applicable.
Issuer Profile
Dangote Industries, one of the largest conglomerates in Nigeria and West Africa, operates across multiple sectors, including cement, fertilizer, oil refining, and food production. Despite the financial hurdles it currently faces, Dangote remains a significant player in the region’s industrial and manufacturing landscape.
Background
The company’s struggles with debt refinancing have raised investor concerns, particularly given the current economic environment. While Fitch has withdrawn its ratings, Dangote continues to explore various strategic partnerships to stabilize its financial footing.
ESG Considerations & Macroeconomic Assumptions
No environmental, social, or governance (ESG) considerations were directly linked to this rating action, and no updated macroeconomic forecasts have been provided by Fitch in this instance.
Fitch Ratings’ withdrawal of Dangote’s ratings emphasizes the critical importance of managing maturing debt and maintaining financial health in a rapidly changing economic environment.
