Agusto & Co has withdrawn the credit rating previously assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond following the company’s default on scheduled debt repayments.
In a statement, the rating agency announced the withdrawal of Geregu Power’s ‘A-‘ rating, citing the company’s failure to meet its eighth coupon payment and fourth principal repayment obligation under the bond programme.
Agusto & Co also disclosed that the decision was influenced by concerns over the reliability of the company’s financial information, noting that it no longer had sufficient verified data to sustain an independent assessment of the power firm’s creditworthiness.
According to the agency, Geregu Power’s management informed it that the company’s previously issued financial statements are currently undergoing an independent verification process.
“Pending completion of this review, Agusto & Co is unable to rely on the current audited financial statements and, therefore, cannot provide an opinion regarding the Company’s creditworthiness,” the agency stated.
The development represents a significant setback for Geregu Power, which had maintained an investment-grade rating that reflected a relatively strong capacity to meet its financial obligations.
Agusto & Co noted that the withdrawal should be viewed in the context of both the company’s recent bond default and the absence of sufficient reliable financial information required for a credible rating assessment.
The agency explained that uncertainties surrounding the company’s financial records have prevented it from forming an objective opinion on Geregu Power’s current financial position and ability to meet future obligations.
Despite withdrawing the rating, Agusto & Co indicated that it would revisit the company’s credit profile once the ongoing review of its financial statements is concluded.
“We will undertake a reassessment of the Company’s rating upon completion of the ongoing independent forensic review and receipt of reliable financial statements for the year ended December 31, 2025,” the agency said.
The default has raised concerns among investors and stakeholders about the financial health of the power generation company and its capacity to meet outstanding debt commitments.
Geregu Power, one of Nigeria’s leading power generation companies, has yet to publicly provide details on the circumstances surrounding the missed payments beyond the ongoing review of its financial statements.
The rating withdrawal leaves investors awaiting the outcome of the independent verification process, which Agusto & Co says will determine when a fresh assessment of the company’s creditworthiness can be conducted.
