Africa: S&P Global to Acquire Pan-African Rating Agency Agusto

S&P Global has agreed to acquire a majority stake in pan-African credit ratings agency Agusto & Co., expanding its presence in Africa’s domestic credit markets through a partnership that combines global analytical expertise with regional market knowledge.

The transaction, announced on Tuesday, remains subject to regulatory approvals and is expected to close in the second half of 2026. Financial terms were not disclosed. Agusto & Co. operates in Nigeria, Kenya, Ghana and Rwanda and will continue to function as an independent domestic ratings agency, maintaining responsibility for issuing its own credit ratings and applying its existing rating methodologies.

S&P Global said the investment aligns with its long-term strategy to strengthen its presence across Africa by enhancing market intelligence and supporting issuers, investors and financial institutions. President of S&P Global Ratings Yann Le Pallec said the partnership would improve transparency, strengthen market dialogue and increase investor confidence in Africa’s capital markets. Agusto & Co. Managing Director Yinka Adelekan described the deal as a milestone for the company and said it fulfilled the vision of its late founder to establish a strategic partnership with a leading global ratings agency.

The acquisition comes as international credit rating agencies face growing scrutiny from African governments and regional institutions, which argue that sovereign ratings often underestimate the continent’s creditworthiness and increase borrowing costs. S&P Global and other major rating agencies have consistently rejected allegations of bias, maintaining that their ratings are based on established methodologies and credit fundamentals.

Key Takeaways

S&P Global’s investment in Agusto & Co. underscores the growing importance of Africa’s domestic debt markets and the increasing demand for local credit assessments as governments and companies seek alternative sources of financing. Domestic rating agencies play a critical role by evaluating borrowers within local market contexts, helping investors assess credit risk in local currency debt and corporate bond markets. The partnership also comes at a sensitive time, as African policymakers continue to push for reforms to the global credit ratings industry, arguing that international agencies often assign lower sovereign ratings than warranted, increasing borrowing costs for governments and businesses. By acquiring a controlling stake in an established regional ratings firm while allowing it to retain operational independence, S&P Global gains deeper access to local markets while supporting the development of domestic capital markets. The transaction reflects growing international interest in Africa’s financial sector and could encourage greater participation by global investors, provided stronger local credit infrastructure continues to improve market transparency and confidence.

Sign up for free AllAfrica Newsletters

Success!