Moody's stabilizes Acorn Project view

Moody's Investors Service said it changed the outlook on Acorn Project (Two) LLP to stable from negative and affirmed the (P)B1/Aa2.ke ratings on the KES 5.7 billion backed senior secured medium-term note program and the backed senior secured ratings of B1/Aa2.ke on the drawdowns under the program.

"Acorn's construction of its student accommodation has demonstrated resilience throughout the coronavirus pandemic and its properties have ramped up quickly in an undersupplied market. The recent sale of a second asset and associated deleveraging reduces risks around the 2024 bullet maturity and supports the issuer's ability to withstand portfolio valuation declines," said Christopher Bredholt, a Moody's vice president, senior credit officer and lead analyst, in a press release.

S&P acts on IHS, Seplat

S&P said it raised its ratings on IHS Holding Ltd. and revised its outlook for Seplat Energy plc to negative from stable and affirmed its B ratings. Both companies have exposure to Nigeria, and the agency recently revised its outlook for the sovereign to negative.

“IHS has significant, but declining economic exposure to Nigeria, and we now view the company as incrementally less exposed to Nigerian sovereign risk,” S&P said in a press release. The agency raised IHS’ issuer rating to B+ from B. The issuer’s outlook remains negative.

“The upgrade also reflects the increasing diversification of IHS' earnings. After tower acquisitions in South Africa and Brazil, we are now confident that the contribution of IHS' Nigerian operations to the group's EBITDA fell below 70% in 2022, our upgrade trigger for the previous B rating,” S&P noted.

In the case of Seplat, all its operations are in Nigeria. “The negative rating outlook on Seplat reflects that on Nigeria, and our view that further weakness in Nigeria's fiscal and external position could affect the transfer and convertibility of cash out of Nigeria for debt repayment,” the agency said.

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