Global Credit Ratings (GCR) has upgraded the long-term Issuer rating of Dangote Cement to AAA (NG), and affirmed the short-term issuer rating of A1+(NG), with outlook accorded as “stable.”
The GCR also upgraded the long-term Issue rating of AAA (NG) accorded to Dangote Cement’s existing N100bn Series 1 Fixed Rate Bond, and assigned an indicative rating of AAA (NG) to its proposed Up to N300bn 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, speaking on the rating 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.”