Dangote Cement’s long term corporate family rating (CFR) has been downgraded to B2 from B1 by a rating agency, with a negative outlook.
The rating agency has dropped the Nigeria-based industrials producer on increased amount of dollar debt to approximately $559 million (₦230 billion) equivalent. This represents 43% of total debt as of 30 September 2021, up from about ₦71 billion in 2019.
Dangote’s stable outlook reflects mirrors the Nigerian sovereign’s negative outlook.
This comes after the rating agency affirmed Dangote’s ratings in 2020, due its extensive distribution network, significant scale economies and position as the largest corporate on the Nigerian Stock Exchange, with sound access to capital.