S&P lowers MTN’s long-term credit rating to junk status
MTN Group has had its long-term credit rating cut to junk status by S&P Global Ratings, the cellphone network announced on Monday.The credit ratings agency cut MTN’s rating from BBB-— the lowest investment grade rating — to BB+ following its cut of the sovereign credit rating of MTN’s largest market, Nigeria, to B from B+."In our view, Nigeria’s economy has weakened due to a marked contraction in oil production, a restrictive foreign exchange regime, and delayed stimulus. MTN has material exposure to Nigeria and SA (which represent 37% and 25%, respectively, of group revenues as of June 30, 2016)," S&P said in its statement.S&P said that it took into account the Nigerian Communications Commission’s cutting of the fine it gave MTN for failing to identify its customers to $1.6bn from $5.2bn.S&P said that MTN’s stand-alone credit profile remained unchanged at BBB."This cap is in line with peers and reflects our view of MTN’s exposure to potential legal and regulatory risks. We also con...
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