Moody's gives Dangote Cement notes B2

Moody's Investors Service said it assigned a B2 local-currency and Aa3.ng national scale ratings to Dangote Cement plc's planned senior unsecured series 2 notes. Dangote’s ratings, including its B2 corporate family ratings and Aa3.ng national scale CFR are unchanged.

“The ratings assigned to the company's series 2 unsecured notes are aligned with the company's B2 CFR and Aa3.ng national scale CFR. This reflects Moody's view that the low secured debt in the capital structure, sustainably low group leverage and high unencumbered asset base in Nigeria provide sufficient recovery protection for senior unsecured lenders,” the agency said in a press release.

The proceeds will be used to partly repay debt, fund ongoing capital projects and for working capital requirements. “Post the bond issuance, Moody's expects gross debt/EBITDA to remain conservatively positioned around 1x for 2022.”

The stable outlook is unchanged.

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