GCR Ratings, an affiliate of Moody’s Ratings, has upgraded Dangote Industries Limited’s credit ratings by four notches to the highest possible levels on its national rating scale.

The ratings agency upgraded the company’s long-term issuer rating from A+(NG) to AAA(NG), while its short-term issuer rating was raised from A1(NG) to A1+(NG). Both ratings carry a Stable Outlook.

GCR also upgraded the national-scale long-term issue ratings of Dangote Industries Funding Plc’s Series 1 Tranche A and Tranche B Bonds, as well as its Series 2 Bond, from A+(NG) to AAA(NG).

According to GCR, the upgrade was driven by stronger cash flows following the successful ramp-up of the Dangote Petroleum Refinery to full capacity, sustained earnings from other businesses, debt repayment and refinancing, improved leverage and liquidity, as well as stronger risk management, treasury operations and financial reporting.

The agency said the Group’s improved operating performance had enabled it to repay and refinance debt on more favourable terms, resulting in stronger leverage metrics.

Dangote Industries said the upgrade reflected its improved financial performance, stronger cash flows and enhanced liquidity position.

Commenting on the development, the Group Chief Financial Officer, Murat Erden, described the ratings as an independent recognition of the Group’s financial transformation and disciplined approach to growth.

He said the new ratings would strengthen the Group’s ability to expand its businesses, enhance transparency for investors and creditors, broaden funding sources and improve liquidity management.

Erden added that the Group remained committed to institutional-quality governance, financial transparency and disciplined capital allocation as it progresses with the Dangote Petroleum Refinery and Petrochemicals initial public offering.