Moody’s Investors Service, (“Moody’s”) has downgraded MTN Group Limited’s (MTN) corporate family rating (CFR) to Ba2 from Ba1.
The rating outlook remains negative in line with the sovereign outlook.
Moody’s has stated that the rating action is a direct consequence of the rating action on the South African sovereign and reflects
MTN’s material exposure to South Africa which is a key market for MTN. Moody’s has also considered MTN’s other key market
Nigeria (B2 negative) where it also views the country risk as elevated and where the market is currently experiencing shortage of dollar liquidity.
Notwithstanding the ratings action, Moody’s has acknowledged that the Company’s financial and operating performance has been resilient in the current year despite the challenges created by the COVID-19 pandemic.
Moody’s will however continue to monitor the sovereign ratings or regulatory risks in MTN’s other key markets and will continue to weigh these against the resilience of MTN’s underlying credit profile.
For commentary on details ratings taken please refer to Moody’s press release available on their website:
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