Key takeaways:
- S&P Global Ratings acquired a majority stake in Lagos-based Agusto & Co.
- The deal deepens S&P’s coverage of Africa’s domestic credit market
- Agusto will continue operating separately and issuing its own ratings
S&P Global Ratings has acquired a majority stake in Nigeria-based rating agency Agusto & Co., a move aimed at expanding its coverage of Africa’s credit market.
S&P announced the deal in a statement Tuesday, without disclosing financial terms.
“The investment, a strategic step for both companies, will complement and support the growth strategy of the S&P Global Ratings division in Africa,” the company said.
Agusto & Co., founded in 1992, provides ratings and research for businesses in Nigeria and other African markets including Kenya, Rwanda and Ghana.
The Lagos-based firm has assigned more than 4,000 ratings since its founding, according to the statement. The deal deepens S&P’s presence in Africa’s domestic corporate credit segment, an area where Agusto has built more than three decades of local expertise.
Part of a wider push into African credit markets
Moreover, the acquisition adds to a broader trend among global ratings companies expanding their presence on the continent, following criticism from African governments and institutions including the United Nations that limited local coverage fails to adequately capture conditions in African economies.
In 2024, Moody’s Ratings acquired Global Credit Rating Co., a South Africa-based ratings company with operations across the continent.
African governments and bodies including the African Union have accused global agencies of bias against the continent, arguing that African countries receive unfairly low ratings that push up borrowing costs and slow development.
Moody’s and S&P have both rejected accusations of bias.
Yann Le Pallec, S&P Global’s president, said the combination of S&P’s global expertise with Agusto’s local knowledge could strengthen analysis and market confidence.
“Can foster informed analysis, constructive market dialogue, and greater investor confidence both regionally and internationally,” Le Pallec said.
Agusto to continue to operate
Agusto will continue to operate as a separate ratings entity, issuing its own credit ratings and methodologies in accordance with local regulations, S&P said.
The arrangement mirrors similar structures used by other global ratings firms that have acquired regional agencies, preserving local market knowledge while integrating broader institutional resources.
The transaction is subject to regulatory approval and is expected to close in the second half of this year.
