S&P Global has agreed to acquire a majority stake in pan-African ratings agency Agusto & Co, seeking to deepen its presence in Africa’s domestic credit markets, it said on Tuesday.
Agusto & Co will continue to operate as a separate ratings entity, issuing its own credit ratings and methodologies.
Agusto & Co’s operations and autonomy
The business has operations in Nigeria, Kenya, Rwanda and Ghana.
African governments and institutions have stepped up criticism of global rating agencies, accusing them of bias against the continent.
The African Union and others have said African countries receive unfairly low ratings, pushing up borrowing costs and slowing development.
Criticism of global rating agencies
Moody’s and S&P have rejected accusations of bias.
The deal is subject to regulatory approvals and is expected to close in the second half of this year.
Financial terms were not disclosed.
- S&P Global will acquire a majority stake in African ratings agency Agusto & Co to expand its presence in Africa's credit markets.
- Agusto & Co will maintain operational independence, continuing to issue its own credit ratings and methodologies.
- Agusto & Co operates in Nigeria, Kenya, Rwanda, and Ghana.
- African governments and institutions have criticized global rating agencies like Moody's and S&P for perceived bias and unfairly low ratings on the continent.
- The acquisition is pending regulatory approval and expected to finalize in the second half of the year; financial terms were not disclosed.
S&P Global has agreed to acquire a majority stake in pan-African ratings agency Agusto & Co, seeking to deepen its presence in Africa's domestic credit markets, it said on Tuesday.
Agusto & Co will continue to operate as a separate ratings entity, issuing its own credit ratings and methodologies.
African governments and institutions have stepped up criticism of global rating agencies, accusing them of bias against the continent.
Moody's and S&P have rejected accusations of bias.
Financial terms were not disclosed.
