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S&P Global to acquire Nigerian ratings agency
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S&P Global said it will take a majority stake in Nigeria’s oldest credit ratings agency, expanding the financial data company’s ground presence in Africa amidst a growing clamor for better assessments of the continent’s realities.
As one of the big three ratings agencies, alongside Fitch and Moody’s, S&P Global plays a crucial role in determining whether African sovereigns and businesses can secure capital from international financial markets.
S&P Global said the acquisition of Lagos-based Agusto & Co, which also operates in Ghana, Kenya, and Rwanda, demonstrates its commitment to “growth and transparency in local credit markets.”
The African Union has backed a plan to create a homegrown ratings agency due to launch in October.
But some critics have argued that promoting data transparency around African budgets and debt stocks would have a more meaningful impact in improving the continent’s assessment by the global agencies.