Rating Release
Agusto & Co. affirms the “Aa+’’ rating assigned to MTN Nigeria Communications PLC’s ₦110,001,000,000 Seven-Year 13% Senior Unsecured Fixed Rate Series 1 Bond Due 2028 under a ₦200 billion Bond Issuance Programme, with a stable outlook
The rating expires on 30 April 2026.
Agusto & Co. hereby affirms the “Aa+ rating assigned to MTN Nigeria Communications PLC’s (“MTN Nigeria” or “the Issuer”) ₦110,001,000,000 Seven-Year 13% Senior Unsecured Fixed Rate Series 1 Bond Due 2028 (“Series 1 Bond”, “the Bond” or “the Issue”) under the ₦200 billion Bond Issuance Programme”. The affirmed rating highlights the Issuer’s strong ability to meet obligations promptly, backed by robust cash flow, a healthy liquidity profile, moderate leverage, adequate working capital. and a stable, qualified, and experienced management team. The Issue rating also considers MTN Nigeria’s strong market leadership in the domestic telecommunications sector, underpinned by its extensive spectrum licenses supporting the ongoing 4G expansion and 5G network expansion. Furthermore, the rating also considers the positive impact of the recently approved 50% tariff adjustments on telecom services (data, SMS and voice), which is expected to drive a full recovery in the Issuer’s profitability and shareholders’ funds by the end of 2025. Nonetheless, the Issue rating is constrained by the Issuer’s weak profitability metrics amid substantial foreign exchange losses recorded in 2023 and 2024.
In May 2021, MTN Nigeria Communications PLC issued a ₦110 billion 13% Seven-Year Senior Unsecured Fixed Rate Bond Due 2028 under the ₦200 billion Debt Issuance Programme. The Series 1 Bond represents a direct, senior, unsecured and unsubordinated debt, ranking pari passu with other direct, senior and unsecured debt obligations of MTN Nigeria Communications PLC. Part of the Series 1 Bond proceeds were used to refinance some existing borrowings of the Issuer, while the remaining proceeds were utilised to part-finance the network infrastructure expansion projects.
