Agusto Withdraws Geregu’s ‘A’ Rating after N40bn Bond Default 

Emmanuel Addeh in Abuja

Agusto & Co has withdrawn the ‘A’ credit rating assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond following the power generation company’s recent default on the eighth coupon payment and fourth principal repayment.

The rating agency, in a statement, said the withdrawal was prompted by both the default and its conclusion that it no longer had “sufficient reliable information” to maintain a credit rating opinion on the company and its bond.

Agusto & Co explained that Geregu Power’s management had informed the agency that the company’s previously issued financial statements were 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 rating agency stated.

The development marks a significant setback for Geregu Power, which had previously maintained an ‘A’ rating from Agusto & Co, indicating a relatively strong capacity to meet financial commitments.

The rating agency said its decision was directly linked to the company’s failure to meet the latest scheduled debt obligations.

“Agusto & Co has withdrawn the ‘A-’ rating assigned to Geregu Power PLC and its N40.09 billion Series 1 Senior Unsecured Bond following the Company’s recent default on the eighth coupon payment and fourth principal repayment,” it said.

The company’s financial reporting has also become a key concern for the rating agency, following management’s decision to subject previously released financial statements to an independent verification process.

According to Agusto & Co, the uncertainty surrounding the financial statements means it cannot presently form a reliable view of Geregu Power’s creditworthiness.

The agency, however, said the withdrawal does not represent the end of its assessment of the company, noting that it intends to reassess Geregu Power once the ongoing review is completed and credible financial information becomes available.

“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 31 December 2025,” Agusto & Co stated.

The latest development comes after the company’s default on the bond, which has raised concerns among investors over the financial position of the power producer and its ability to meet its debt obligations.

Agusto & Co said its rating withdrawal should therefore be understood in the context of both the payment default and the lack of sufficient verified financial information required to sustain its previous credit opinion.