Geregu Default Tests Integrity of S&P's Agusto Acquisition in Nigeria

Rating agency Agusto & Co has withdrawn Geregu Power's rating following the company's N40.09 billion bond default, and the handling of this decision is now being watched as an early test of the standards S&P is inheriting through its acquisition of Agusto. The episode extends the cash-flow risk analysis of Geregu first reported on August 14 into a broader question about African credit rating credibility.