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Global financial intelligence and ratings company S&P Global has agreed to acquire a majority stake in Agusto & Co., a leading African credit rating agency, in a deal aimed at strengthening its presence in the continent’s domestic debt markets.
The transaction brings together S&P Global Ratings’ international analytical capabilities and Agusto & Co.’s long-standing knowledge of African markets, with the companies saying the partnership will support greater transparency, stronger local credit markets and improved investor confidence across the continent.
S&P Targets Deeper Presence in Africa
The proposed acquisition gives S&P Global a stronger foothold in Africa’s domestic credit-rating landscape at a time when local-currency debt markets are becoming increasingly important to governments and businesses seeking to diversify their sources of funding.
S&P Global said the transaction would complement its existing international sovereign and corporate ratings business by giving it greater access to local market intelligence and domestic credit activity.
Yann Le Pallec, President of S&P Global Ratings, said the company was pleased to partner with Agusto & Co. to expand its domestic ratings presence across Africa, adding that the combination of global analytical expertise and regional knowledge could strengthen transparency and support the development of local credit markets.
Agusto’s Pan-African Expertise
Founded in Nigeria, Agusto & Co. has developed into a prominent Pan-African ratings firm with expertise spanning several African markets.
The agency has built its reputation by providing credit assessments of companies and financial institutions operating within African economies, giving it detailed knowledge of local business environments and market conditions.
Under the proposed arrangement, Agusto is expected to retain its local-market expertise and operating capabilities while gaining access to S&P Global Ratings’ broader international resources and analytical experience.
Deal Comes Amid Debate Over African Credit Ratings
The agreement arrives amid renewed debate over the way African economies are assessed by international credit-rating agencies.
African governments and policymakers have repeatedly argued that global ratings can fail to adequately reflect the continent’s economic realities and may contribute to higher borrowing costs.
The proposed S&P-Agusto partnership therefore comes at a significant moment for African capital markets, where policymakers are pushing for deeper domestic markets and greater availability of locally informed credit assessments.
The acquisition also follows broader efforts to strengthen African-led approaches to credit assessment, including plans around the establishment of an African Credit Rating Agency.
Local Currency Markets Gain Importance
The growth of domestic debt markets has become increasingly important as African countries seek alternatives to heavy reliance on foreign-currency borrowing.
Stronger local credit-rating infrastructure can help investors evaluate issuers and credit risks while potentially improving access to capital for businesses seeking funding within their home markets.
S&P Global’s investment in Agusto therefore positions the company to participate more deeply in the development of these markets while leveraging Agusto’s understanding of African issuers and investors.
Potential Boost for Investor Confidence
For investors, the combination could provide broader access to credit information and analysis covering African companies and financial institutions.
S&P Global said the partnership is intended to support the development of African markets, improve transparency and strengthen confidence in domestic credit markets.
The companies have not disclosed the financial terms of the transaction. Completion is also subject to obtaining the required regulatory approvals.
A Strategic Move in Africa’s Ratings Market
The acquisition marks a significant expansion of S&P Global’s African strategy and highlights the growing commercial importance of the continent’s domestic capital markets.
For Agusto & Co., the partnership provides an opportunity to combine its regional expertise with the resources and global reach of one of the world’s largest credit-rating organisations.
If completed, the deal could reshape competition in Africa’s credit-ratings industry while strengthening the infrastructure available to investors assessing opportunities across the continent.
