S&P Global Buys Control of a Pan-African Rating Agency
NIGERIA · FINANCE
Key Facts
—The deal: S&P Global said on 28 July that it has agreed to buy a majority stake in Agusto & Co., a Pan-African rating agency licensed in Nigeria, Kenya, Rwanda and Ghana.
—Terms: Not disclosed. S&P Global said the transaction will not have a material impact on its results and should close in the second half of 2026, subject to regulatory approvals.
—Track record: Agusto & Co. has assigned more than 4,000 ratings since 1992, covering banks, corporates, insurers, funds, municipal bonds, structured notes and sovereigns.
—Independence: The agency will keep operating as a separate ratings entity, with its own methodologies and its own published ratings.
—The founder: Olabode Agusto built Nigeria’s first licensed rating agency and ran the federal Budget Office from 2002 to 2007. He died in October 2023, and his successor calls this deal the fulfilment of his ambition.
—The stated aim: S&P Global says the partnership is intended to expand market insights, strengthen credit transparency and support market participants across the region.
African credit ratings are about to have a new owner at the top: S&P Global has agreed to take a majority stake in Agusto & Co., the Lagos agency that has rated the continent’s banks and companies for more than three decades. The terms were not disclosed.
What S&P Global is buying
S&P Global announced on 28 July that it had agreed to acquire a majority stake in Agusto & Co., which it describes as a leading Pan-African rating agency with operations in Nigeria, Kenya, Rwanda and Ghana. The terms were not disclosed.
The transaction needs regulatory approvals and is expected to close in the second half of 2026. S&P Global said it would not have a material effect on the group’s financial results.
Agusto & Co. will continue to operate as a separate ratings entity, issuing its own ratings under its own methodologies. That structure keeps both the local licences and the local franchise intact.
Why African credit ratings matter to outside money
Ratings on the continent are produced at two very different altitudes. The global agencies cover sovereigns and a short list of large issuers, while domestic agencies cover the banks, insurers and mid-sized companies that account for most of the actual borrowing.
The result is that a Nigerian or Kenyan corporate bond can be well understood at home and close to invisible abroad. Foreign institutions cannot easily compare it with anything in their own books.
S&P Global’s stated aim is to expand market insights, strengthen credit transparency and support market participants across the region. Yann Le Pallec, president of S&P Global Ratings, framed it as a commitment to local credit markets throughout the continent.
The founder’s unfinished ambition
Agusto & Co. was founded in 1992 by Olabode Agusto and became the first credit rating agency licensed by Nigeria’s Securities and Exchange Commission. Agusto served as director-general of the federal Budget Office from 2002 to 2007, the years in which Nigeria ran surpluses and negotiated debt relief.
He died in October 2023, aged 68. The firm’s managing director, Yinka Adelekan, presented the S&P transaction as the completion of his plan.
“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” Adelekan said.
What stays local, and what does not
The four licences matter more than the headline. Nigeria, Kenya, Rwanda and Ghana each regulate ratings separately, and a domestic licence is what allows an agency’s opinion to carry weight in local regulatory and investment decisions.
Agusto & Co. is also an approved verifier under the Climate Bonds Standard and is listed by the International Capital Market Association as an external reviewer for green, social and sustainability bonds. That makes it one of the few African firms able to sign off on labelled debt.
The question issuers will ask is whether the agency’s opinions stay genuinely independent of a majority owner that also rates their sovereign. S&P Global’s answer, in the announcement, is the separate-entity structure.
A template Latin American investors will recognise
There is a precedent inside the same group. S&P Global already owns CRISIL in India, where a domestic agency operating under a global parent became the reference point for a fast-growing local bond market.
Latin America shows the other half of the picture. S&P rates the region’s sovereigns directly, and a single notch moves the cost of money for every borrower beneath it.
Africa’s domestic markets have never had that transmission mechanism at scale. Buying the agency that rates the borrowers is one way to build it.
What still has to happen
Four regulators have to approve the change of control before the deal closes in the second half of the year. None of them has published a timetable.
The timing is not accidental. African issuers are testing international markets again after several difficult years, and the depth of domestic credit information is one of the things that decides how much they pay.
Frequently Asked Questions
What has S&P Global agreed to buy?
S&P Global said on 28 July 2026 that it has agreed to acquire a majority stake in Agusto & Co., a Pan-African rating agency licensed in Nigeria, Kenya, Rwanda and Ghana. The terms were not disclosed.
Will Agusto & Co. still issue its own ratings?
Yes. S&P Global said the agency will continue to operate as a separate ratings entity, issuing its own credit ratings under its own methodologies in line with local regulation.
When does the transaction close?
S&P Global expects the deal to close during the second half of 2026, subject to customary conditions and the required regulatory approvals in each market.
Who founded Agusto & Co.?
Olabode Agusto founded the firm in 1992 and built it into Nigeria’s first licensed credit rating agency. He also ran Nigeria’s federal Budget Office from 2002 to 2007, and died in October 2023.
Why do African credit ratings matter to foreign investors?
Global agencies rate sovereigns and a few large issuers, while domestic agencies cover most of the banks and companies that actually borrow. Without comparable local ratings, foreign institutions struggle to assess African corporate debt.
Connected Coverage
Ratings decide the price of borrowing, as Argentina’s upgrade this year showed when a single notch reset the country’s cost of money, and as Ghana’s early Eurobond repayment showed when a sovereign paid down debt early to reset its standing. The wider contest for who finances the continent runs through Africa: The New Scramble.
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