MTN Nigeria Communications Plc has received an affirmation of its national scale long-term and short-term issuer ratings of AAA and A1+, respectively, from Global Credit Rating Co. Limited (GCR) with the rating outlook revised upward from Negative to Stable.
GCR also reaffirmed the AAA long-term issue ratings on all outstanding series of MTN Nigeria’s senior unsecured bond issuances, reinforcing the company’s strong credit profile and financial resilience.
According to Mtn’s notice to the Nigerian Exchange Limited (NGX) seen by THE WHISTLER, the upgrade to a stable outlook reflects MTN Nigeria’s return to profitability, underpinned by reduced foreign exchange exposure, improved cash flow generation and sustained revenue growth from data and digital services.
The report further noted that the company’s liquidity position remains robust, supported by a sizeable cash reserve and adequate coverage of near-term obligations.
Despite reporting a negative equity position, GCR emphasized that the company continues to demonstrate improved leverage metrics and a strong operating profile, contributing to confidence in its ability to meet financial obligations.
Commenting on the development, Chief Executive Officer of MTN Nigeria, Karl Toriola noted that the company was encouraged by the affirmation of our ratings and the upgrade of its outlook to stable, which reflects the progress the company have made in strengthening its financial position and returning the business to profitability.
“Our improved earnings trajectory, driven by resilient demand for our services, positions us to achieve a positive equity position within the current financial year,” he said.
