Agusto & Co withdraws Geregu Power’s rating after N40.09 billion bond default
Agusto & Co has withdrawn the “A-” credit rating assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond, after the company defaulted on its scheduled eighth coupon payment and fourth principal repayment, raising fresh concerns about its near-term debt-servicing capacity. The post Agusto & Co withdraws Geregu Power’s rating after N40.09 billion bond default appeared…
Agusto & Co has withdrawn its "A-" credit rating and the rating on Geregu Power Plc's N40.09 billion bond after the company defaulted on its previously scheduled payments. The ratings agency cited both the default event and its inability to obtain reliable information from Geregu Power's management, who are conducting an independent verification process.
This marks a significant downgrade from the previous "A-" rating and Stable outlook assigned to Geregu Power's bond. The company's financial performance, particularly its operating results and earnings in 2026, has been a cause for concern, leading to increased scrutiny of its debt position. The missed bond payments come at a challenging time for Geregu Power, following a significant decline in revenue due to major turbine maintenance.
The company's bond, issued in 2022, was initially rated BBB+ with a Stable outlook by Agusto & Co. The default and withdrawal of the rating reflect a stark contrast to Geregu Power's stronger financial performance in 2025, when it reported a pre-tax profit of N41.98 billion.
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