Fitch Ratings has withdrawn Dangote Industries Limited’s (Dangote) National Long-Term Rating and senior unsecured rating of ‘B+(nga)’, while maintaining them on Rating Watch Negative (RWN), over refinancing risk related to loans used to construct its 650,000 barrels per day refinery.
“The RWN reflects the uncertainty related to the group’s ability to repay or refinance maturing debt in 2025, with the earliest maturity in February 2025.,” Fitch said in a market update.
Fitch said it will no longer provide ratings or analytical coverage for Dangote Industries Limited and has withdrawn them for commercial reasons.
Dangote Industries has immediate debt servicing requirements related to the syndicated loan raised to finance the refinery construction within Dangote Petroleum Refinery and Petrochemicals (DPRP), which faced delays and cost overrun. During 9M24, the refinery operated at around 50% of its capacity, leaving EBITDA generation below our previous projections.
The company is in talks with its lenders to refinance the debt under new terms, which could include amendment and extension of the overall debt maturities.
Dangote Industries Liquidity and Debt Structure
Dangote Industries had senior secured syndicated debt of USD2.0 billion at end-2024 (largely due in 2025 and 2026 pre-reprofiling) and a USD1.65 billion loan from its ultimate parent, Greenview plc, classified as on demand debt.
The company has also senior unsecured debt to finance capex at various subsidiary levels.
Fitch noted that lack of tangible steps to refinance or repay the maturing debt or steps towards refinancing constituting a distressed debt exchange under its rating criteria would lead to negative rating action
“We do not expect positive rating action until the company’s liquidity position substantially improves,” Fitch said.
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 National Long-Term Rating and senior unsecured rating of 'B+(nga)){kind=link}