Transaction brings together Agusto & Co.’s Pan-African market expertise and S&P Global Ratings’ global ratings experience to support the development of African markets.
Partnership deepens and strengthens S&P Global Ratings’ presence in Africa’s domestic credit markets.

S&P Global has agreed to acquire a majority stake in Agusto & Company Limited, a Pan-African credit rating agency with operations across Nigeria, Kenya, Ghana and Rwanda, in a move that significantly expands the global ratings giant’s presence in Africa’s rapidly growing domestic debt markets.

The transaction, announced on Tuesday, comes at a pivotal moment for African credit markets. African governments and regional institutions have intensified criticism of global rating agencies in recent years, accusing them of applying an “African premium” that inflates borrowing costs and denies the continent fair access to international capital.

While financial terms were not disclosed, the deal is expected to close during the second half of 2026, subject to regulatory approvals in the jurisdictions where Agusto operates.

A Strategic Marriage S&P Global and Agusto & Company Limited

The partnership brings together S&P Global Ratings’ international analytical capabilities with Agusto & Co.’s three decades of deep regional knowledge, according to a joint statement from the companies.

Founded in Nigeria, Agusto & Co. has built a reputation as one of Africa’s most trusted domestic credit rating institutions, providing ratings for financial institutions, corporates and other entities across the continent.

“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” said Yann Le Pallec, President of S&P Global Ratings. “Africa’s opportunity is extraordinary, and by combining our global expertise with Agusto & Co.’s deep local insights, together we can foster informed analysis, constructive market dialogue, and greater investor confidence both regionally and internationally”.

Yinka Adelekan, Managing Director of Agusto & Co., described the agreement as “a transformational milestone for Agusto & Co. and African capital markets,” noting that it fulfills the vision of the company’s late founder to affiliate with a leading global rating agency.

Tension between African governments and global credit rating agencies

The acquisition comes against a backdrop of mounting tension between African governments and the major global credit rating agencies, S&P Global, Moody’s and Fitch, which together control approximately 95 per cent of the global market share. Critics argue that these agencies consistently underestimate Africa’s creditworthiness, leading to unnecessarily high borrowing costs.

A study by the Michigan State University found that African nations paid approximately 1 per cent more than similarly rated peers between 2006 and 2022, a premium that cost the continent an additional US$5 billion in Eurobond interest payments alone. The United Nations Development Programme has estimated that 16 African countries collectively lose over $74 billion in excessive debt servicing costs due to ratings that are lower than warranted.

The African Union has responded by establishing the Africa Credit Rating Agency (AfCRA), headquartered in Mauritius and set to launch in 2026, with the explicit mandate of providing more nuanced credit assessments that reflect African economic realities.

Agusto to Maintain Operational Independence

Despite the majority acquisition, Agusto & Co. will continue to operate as a separate ratings entity, issuing its own credit ratings and methodologies in accordance with applicable regulatory requirements. The structure appears designed to preserve Agusto’s domestic credibility while leveraging S&P Global’s resources and affiliate network.

Le Pallec emphasized that the transaction “underscores our commitment to supporting growth and transparency in local credit markets throughout the continent”. Adelekan echoed this sentiment, stating the partnership would “enhance value for market participants, and support the continued development of transparent and resilient credit markets across the continent”.

Growing International Interest in African Debt Markets

The deal reflects broader international interest in Africa’s financial sector. According to the OECD, African sovereign debt issuance grew from US$70 billion to US$350 billion annually between 2007 and 2024, with outstanding marketable debt rising from US$160 billion to US$730 billion during the same period. Despite representing only 3 per cent of global GDP, Africa’s sovereign bond issuance as a share of GDP has outpaced other emerging market regions.

However, about 80 per cent of rated African countries were classified as high-risk or below in 2024, and only Botswana and Mauritius hold investment-grade ratings. This has fueled demand for more nuanced local credit assessments as governments and companies increasingly turn to domestic debt markets for development financing.

The transaction remains subject to “customary closing conditions, including receipt of required regulatory approvals,” S&P Global said in its statement. The companies expect the deal to close during the second half of 2026. S&P Global indicated the acquisition is “not expected to have a material impact on the financial results of S&P Global or S&P Global Ratings”.

Observers will be watching closely to see how the partnership navigates the sensitive political terrain surrounding credit ratings in Africa, and whether the combination of global reach with local expertise can help bridge the gap between African governments and international capital markets.