S&P Global buys into Africa’s homegrown ratings market with Agusto & Co stake

The transaction will see Agusto continue operating as an independent ratings agency, maintaining its own methodologies and credit opinions while benefiting from S&P Global’s international expertise and resources.

Financial terms of the deal were not disclosed, and completion is expected in the second half of 2026, subject to regulatory approvals.

Agusto & Co. operates across Nigeria, Kenya, Rwanda and Ghana and has built a reputation over more than three decades as one of Africa’s leading providers of domestic credit ratings, industry research and market intelligence.

Since its establishment, the agency has assigned more than 3,000 ratings across banks, corporates, investment firms, insurance companies, funds and sovereign-related entities.

A vote of confidence in Africa’s capital markets

The acquisition reflects growing international interest in Africa’s domestic capital markets, where governments and companies are increasingly turning to local currency bond markets to diversify funding sources and reduce exposure to foreign exchange risks.

Unlike international sovereign ratings, domestic credit ratings help investors compare issuers within local markets and support the development of corporate bond markets by improving transparency and price discovery.

S&P Global Ratings President Yann Le Pallec said the partnership would strengthen the company’s domestic ratings presence across Africa and support the development of transparent local credit markets.

Agusto Managing Director Yinka Adelekan described the transaction as a transformational milestone that fulfils the late founder’s vision of partnering with a global ratings leader while preserving the firm’s analytical independence.

Comes amid Africa’s ratings debate

The deal also comes against the backdrop of growing tensions between African governments and the world’s largest credit rating agencies.

In recent years, the African Union, the African Peer Review Mechanism and the United Nations Economic Commission for Africa have argued that sovereign credit assessments often fail to reflect the continent’s economic fundamentals, resulting in higher borrowing costs and reduced investor confidence.

Those concerns have intensified calls for greater African participation in the credit ratings industry and stronger domestic rating institutions capable of providing market-specific analysis.

S&P Global and Moody’s have consistently rejected allegations of bias, maintaining that their ratings are based on transparent and globally consistent methodologies.

Rather than replacing global sovereign ratings, the Agusto transaction suggests S&P sees value in combining global analytical frameworks with local market expertise as African debt markets become deeper and more sophisticated.

S&P expands beyond traditional ratings

The Agusto acquisition was announced alongside S&P Global’s agreement to acquire data centre intelligence provider DataCenterHawk, underscoring the company’s broader strategy of expanding its analytics and information businesses.

The announcements came as S&P reported strong second-quarter results, with revenue rising 10% to $4.15 billion and adjusted earnings per share climbing 23% to $4.83, driven by increased demand for its ratings, indices and market intelligence products amid heightened geopolitical uncertainty.

The company also reaffirmed its focus on its core ratings, indices, market intelligence and energy businesses following the spin-off of its Mobility division earlier this month.