LONDON, July 28 – S&P Global has agreed to acquire a majority stake in Agusto & Co, a leading pan-African credit ratings agency, in a move that will expand the global ratings firm’s presence across Africa’s domestic capital markets.
The transaction, announced on Tuesday, will see Agusto & Co continue to operate as an independent ratings agency, maintaining its own credit rating methodologies and issuing its own ratings following the completion of the deal.
Agusto & Co., founded in 1992 currently operates across Nigeria, Kenya, Rwanda and Ghana, providing credit ratings and research services to financial institutions, corporates and public sector entities across the continent.
Yann Le Pallec, president of S&P Global Ratings, said the acquisition will support “transparency in local credit markets” across Africa.
The acquisition comes at a time when African governments and regional institutions have intensified calls for reforms to the global credit ratings industry, arguing that international agencies systematically assign lower sovereign ratings to African countries than warranted by economic fundamentals.
Critics, including the African Union, contend that these ratings contribute to higher borrowing costs, limiting access to international capital markets and constraining economic development across the continent.
Global ratings agencies, including S&P Global and Moody’s, have consistently rejected allegations of bias, maintaining that their assessments are based on transparent methodologies and objective evaluations of credit risk.
S&P Global said the transaction remains subject to regulatory approvals and is expected to be completed during the second half of the year. Financial terms of the agreement were not disclosed.
The acquisition reflects growing international interest in Africa’s evolving financial markets and could strengthen analytical coverage of domestic credit markets as governments and companies increasingly seek financing through local capital markets.
