Nigerian credit ratings agency Agusto & Co to start operations in Kenya

By bne IntelliNews May 28, 2013

Nigerian credit ratings agency Agusto & Co has received the green light from Kenya’s Capital Markets Authority (CMA) to set up operations in Nairobi, Business Daily reported. Lagos-based Agusto & Co will become the second ratings agency to start operations in Kenya after South Africa’s Global Credit Rating (GCR). According to market players, the entry of the Nigerian ratings agency into Kenya might be a sign that there is growing interest from West African investors into Kenyan debt instruments. Institutional investors prefer, and some are even required by law, to invest in securities that are rated by credit rating agencies approved by domestic regulators.

The Kenyan debt market has experienced a boom in terms of government securities in recent years, but corporate issuance has lagged behind. Only eight Kenyan companies currently have bonds, worth a total of KES 60bn (EUR 546.5mn), listed at the Nairobi Securities Exchange.

Related Articles

PetroSA, Rosgeo sign $400mn oil and gas exploration agreement for South Africa

South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

Dismiss