Nigeria’s credit rating agency and a pan African leader in credit reports, Agusto & Co. Limited, has assigned an ‘Aa+’ rating to MTN Nigeria.
According to a statement, the rating assigned to the telco, which expires on June 30, 2020, is hinged on its very strong financial condition, characterised by very good profitability, strong cash flow, low leverage and experienced and stable management team.
The rating takes into cognisance MTN’s market leadership, its extensive network coverage and growing voice subscribers as well as active data users. “However, we note that MTN Nigeria is prone to regulatory interference, which has led to volatility in its profitability in recent years,” the statement noted.
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MTN Nigeria is a member of the MTN Group – Africa’s leading telcos with strong presence in 21 countries and over 237 million subscribers. It is the largest mobile operator in Nigeria, with over 60 million subscribers and 20.3 million active data users, controlling about 42 per cent of the Nigerian telecommunications industry’s subscribers1.
In May 2019, MTN became a public limited liability company following its listing by introduction of 20,354,513,050 ordinary shares of N0.02 each on the Nigerian Stock Exchange (NSE) to comply with regulatory requirements.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such.
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