Dangote Cement assigned Ba3 rating from Moody’s Investment service

shakirudeen taiwo

July 7, 2017 11:51 AM

The ratings indicates the company has the ability to fulfill its financial obligations when required.

Aliko Dangote, the Chairman of Dangote Industries Limited

Moody’s Investors Service has rated Dangote Cement as a Ba3 local currency corporate family, with a stable outlook.

According to a statement released by the Nigerian Stock Exchange (NSE) on Thursday, July 6, 2016. The Lagos bourse stated that Dangote Cement's Ba3 ratings indicate it has the ability to meet its financial obligations.

Moody’s Corporate Family members are firms judged as having the ability to fulfil debt obligations if it had a single class of debt and a single consolidated legal entity structure.

The rating is used for speculative-grade issuers and applies all companies or business units under the management of the organisation.

Speaking on the development, the Assistant Vice President and Lead Analysts for Dangote Cement at the Moody’s, Douglas Rowlings stated that: “Dangote Cement Plc’s Ba3 local currency corporate family rating, one notch above the Government of Nigeria’s own rating, reflects the company’s strong standalone credit profile and track record of demonstrated financial support from a larger and more diversified parent Dangote Industries Limited.”

Onne Van Der Weijde, the CEO of Dangote Cement also said the conclusion of the Moody’s is a confirmation of earlier grading of the company as a long-term and short-term national scale issuers rating of AA+ and A1+(NG), with a stable outlook.

“Dangote Cement is a high-growth, low debt, an internationally diversified company that has just paid a dividend amounting to nearly 75 percent of net profits to shareholders.

“The publication of these ratings highlights the financial strength we have achieved through our unwavering focus on the profitable expansion of the business, underpinned by our belief that we must remain prudent in our financial management,” said Onne.

Dangote Cement is Africa’s leading cement producer with 46 million tonnes per annum (Mta) capacity across Africa.

The company has a production capacity of 29.25 Mta in Nigeria, alongside over $3 billion investment in cement industry of other African countries.

shakirudeen taiwo

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