Business

GCR Issues Highest Ratings AAA+(NG) and A1+(NG) to Dangote Cement

Global Credit Ratings has upgraded the long term Issuer rating of Dangote Cement to AAA (NG).

According to a statement received by NewsmakersNG, it has also affirmed the short term issuer rating of A1+(NG), with an outlook accorded as Stable. In addition, GCR has upgraded the long term Issue rating of AAA (NG) accorded to Dangote Cement’s existing N100billion Series 1 Fixed Rate Bond, and assigned an indicative rating of AAA (NG) to its proposed Up to N300billion Series 1 (Tranche A – C) Bond.

According to GCR, the ratings upgrade is underpinned by Dangote Cement’s strong competitive position as Africa’s leading integrated cement manufacturer, evidenced by very strong earnings, robust cash flows and moderate gearing metrics. The Issuer ratings and the existing bond rating will expire in November 2021, while the proposed Series 1 (Tranche A – C) Bond rating is valid until May 2021.

Dangote Cement’s existing N100bn Series 1 Fixed Rate Bond is the only corporate bond at AAA rating in Nigeria. AAA ratings are issued to investment-grade debt that has the highest level of creditworthiness with the strongest capacity to repay investors.

Chief Executive Officer, Dangote Cement, Michel Puchercos, said:“We are delighted to be the first ever Nigerian corporate, and one of the very few in Africa, to receive the AAA issuer rating by Global Credit Ratings. Dangote Cement has been able to maintain its strong competitive position, despite the challenging and volatile environment in 2020 owing to the COVID-19 pandemic. The AAA rating, which is the highest rating issued by Global Credit Rating, affirms our resilient financial position and high creditworthiness. We continue to report strong cash generation and remain committed to maximising shareholder value creation.

This upgrade also supports Dangote Cement’s continuous effort to champion the deployment of international best practices in term of shareholders and debtholders’ engagement and information. For example, being the first Nigerian company listed on the Nigerian stock Exchange Premium Board to release a combined annual and sustainability report confirms to our stakeholders our ambition to maximize long term value creation while embracing global standards.

The full rating can be viewed on Global Credit Ratings’ website: Dangote Cement GCR Rating.

0
Dipo

Dipo Kehinde is an accomplished Nigerian journalist, artist, and designer with over 34 years experience. More info on: https://www.linkedin.com/in/dipo-kehinde-8aa98926

Recent Posts

NNPC, SPDC Joint Venture Donates US$1 Million to Support Borno Flood Victims

Malik Yahya/ The Shell Petroleum Development Company of Nigeria Limited (SPDC JV)—operator of the NNPC…

1 hour ago

Federal Reserve Chair, Powell, Says He’ll Refuse to Step Down if Trump Asks

Femi Ashekun/ Federal Reserve Chair, Jerome Powell, has declared that he wouldn’t resign if President-elect…

13 hours ago

FG Responds to Malaysia’s Plan to Phase Out CNG, Clarifies its Position on Adoption

Segun Atanda/ The Nigerian government has responded to Malaysia's recent announcement to phase out compressed…

19 hours ago

Lagos Police Arrest Dog Owner After Fatal Attack on Security Guard in Lekki

Matilda Omonaiye/ The police in Lagos have arrested Salisu Mustapha, the owner of three dogs…

1 day ago

Why America Chose Donald Trump Again: A Vote for Defiance and Distrust

Dipo Kehinde/ As the news broke, many around the world struggled to understand how a…

2 days ago

Donald Trump Elected US President in Historic Comeback

Editor/ Donald Trump has defeated Kamala Harris in the US presidential election, marking a surprising…

2 days ago