MTN Nigeria Communications Plc has notified the Nigerian Exchange and the investing public that GCR Ratings and Augusto & Co have affirmed their respective ratings for the Company. GCR affirmed the national scale long and short-term issuer rating of AAA and A1+ respectively, as well as the national scale long-term issue rating of AAA accorded to each of the Company’s existing senior unsecured bond issues. In addition, Augusto &Co affirmed the Aa+ issuer rating.
The ratings reflect MTN Nigeria’s strong competitive position, earnings generation capacity and access to various funding sources. A negative outlook was also assigned to the Company due to its exposure to foreign currency risk and inability to pass rising business costs on to customers. However, the Raters have acknowledged MTN Nigeria’s strong cash flow and liquidity profiles, consistent network infrastructure investments and experienced management team.
Commenting on the ratings, the CEO of MTN Nigeria, Karl Toriola, stated thus:
“The ratings affirmations are testaments to MTN Nigeria’s resilience and potential for sustained growth. They reflect our unwavering commitment to maintain a strong position in the market and our dedication to delivering value to our stakeholders. Pleasingly, we have made significant progress in reducing the Company’s US-dollar exposure through renegotiating the commercial terms of our tower lease agreement with HIS Towers and reducing the balance of outstanding letters of credit obligations. These efforts aim to improve our balance sheet and financial outlook while we remain engaged with the authorities on tariff increases for the long-term sustainability of the industry”.