S&P may downgrade MTN if it lifts Nigeria exposure
S&P Global Ratings has warned that it could downgrade MTN's debt if the mobile operator increases its relative exposure to Nigeria. MTN has been at loggerheads with Nigerian authorities in recent years, with the West African state demanding billions of dollars from the operator. The rating agency said in a statement this week, after MTN reached an agreement with Nigerian authorities over historical dividend repatriations, that it was unlikely to downgrade the network operator in the next 90 days. It also affirmed MTN’s BB+ long-term issuer credit ratings. But it could downgrade the company in the next 12 months if its debt climbed or its revenue mix shifted “materially and sustainably, leading to greater exposure to Nigeria — the lower rated sovereign of its two main markets”. In the six months to end-June, MTN generated revenues of R17.2bn from Nigeria, versus R21.2bn from SA. The countries contribute similar levels of profitability towards the group. For now, S&P Global Ratings sa...
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