GCR Affirms MTN Nigeria’s AAA Rating, Outlook Stable

Global Credit Rating (GCR) has reaffirmed MTN Nigeria Communications Plc’s national scale long-term and short-term issuer ratings at AAA(NG) and A1+(NG) respectively, with a stable outlook. This confirms the telecoms company’s continued dominance and financial resilience in Nigeria’s highly competitive telecommunications industry.

In a rating note released to investors, GCR said the affirmation reflects MTN Nigeria’s strong cash flow generation, robust market share, and conservative financial policy, including low gearing and high levels of liquidity.

The agency highlighted the company’s “strong operating cash flows, a leading market position with over 77 million subscribers, and disciplined capital allocation strategy” as key strengths supporting its superior credit profile. MTN Nigeria’s EBITDA margin remained strong at 53% in 2023, and the company declared a final dividend of N10 per share, underlining its healthy financial position.

GCR noted, however, that the company is exposed to foreign exchange risks and the broader macroeconomic volatility in Nigeria. Yet, it said these risks are mitigated by the company’s scale, earnings power, and operational efficiency.

MTN Nigeria is the largest telecommunications operator in the country and a key subsidiary of the South Africa-based MTN Group. It continues to invest in expanding its 4G and 5G networks and fintech services to drive growth and improve digital access in Nigeria.