Rating Release
Agusto & Co. hereby upgrades the ratings assigned to Dangote Sugar Refinery PLC to “A” (long-term) and “A1” (short-term), with a stable outlook
The rating expires on 30 June 2027.
Agusto & Co. hereby upgrades the ratings assigned to Dangote Sugar Refinery PLC (“Dangote Sugar”, “DSR” or “the Company”) to “A” (long-term) and “A1” (short-term). The assigned ratings reflect the successful recapitalisation of Dangote Sugar through the ₦485.9 billion rights issue concluded in June 2026, which is expected to materially strengthen the Company’s capital structure, support balance sheet deleveraging and reduce its funding burden. The ratings are further supported by DSR’s improved profitability and cash flows, underpinned by resilient demand for refined sugar, moderating input costs amid relative exchange rate stability, and a predominantly cash and prepayment sales model. The assigned ratings are also upheld by the Company’s market leadership position in the Nigerian Sugar Industry, established brand equity, extensive distribution network and broad customer base across the industrial and retail segments. The ratings also benefit from strong parental support from Dangote Industries Limited, evidenced by the ₦300 billion advance provided to refinance expensive borrowings. However, the ratings are constrained by Dangote Sugar’s weak internal liquidity and persistent working capital pressures arising from substantial funding requirements for raw sugar imports and backward integration investments. The ratings are also moderated by the Company’s exposure to exchange rate movements, global commodity price volatility and geopolitical disruptions, as well as the execution risks associated with its Numan and Nasarawa backward integration projects.
Dangote Sugar is a leading integrated sugar producer in Nigeria and a subsidiary of Dangote Industries Limited (“DIL”). Established in 1999, the Company commenced operations in 2000 and was listed on the Nigerian Exchange Limited in March 2007. DSR is engaged in sugarcane cultivation and processing, as well as raw sugar refining, packaging, marketing and distribution.