Agusto & Co has withdrawn the ‘A-’ credit rating it assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond following the company’s default on the bond’s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

In a statement, the pan-African credit rating agency said the decision was prompted by the default and its inability to obtain reliable information required to maintain a credit opinion on the power generation company.

Agusto said Geregu Power’s management had disclosed that the company’s previously issued financial statements were undergoing independent verification. It said that pending the outcome of the exercise, it could not rely on the company’s audited accounts and was therefore unable to assess its creditworthiness.

The agency had assigned the ‘A-’ rating to Geregu Power, indicating a strong capacity to meet its financial obligations, although with some exposure to adverse economic conditions. It said it would reconsider the rating after the forensic review is completed and verified financial statements for the year ended December 31, 2025, are made available.

The N40.09 billion bond was issued to support Geregu Power’s funding and expansion plans. At issuance, Global Credit Rating (GCR) assigned the bond a national-scale long-term rating of A (Na), citing the company’s position as a major Nigerian power generator and its strong generation capacity.

Geregu Power has said it is engaging stakeholders and advisers to resolve the repayment default.

The outcome of the ongoing financial review is expected to determine the company’s financial position and whether Agusto & Co will restore its credit rating.