Research Update: Pan-African Mobile Operator MTN Group Ltd. 'BB-' Ratings Affirmed; Outlook Stable

High-growth markets and solid competitive positioning, resulting in resilient cash flow generation and proceeds from its asset realization program, support MTN Group Ltd.'s (MTN's) robust operational performance and deleveraging. We forecast the weighted-average funds from operations (FFO)-to-EBITDA ratio will remain commensurate with the current rating, at 45%-60% adjusted by S&P Global Ratings using 2022-2024 forecasts. We cap our rating on MTN at two notches above our weighted foreign currency sovereign ratings on South Africa (BB-/Positive/B) and Nigeria (B-/Stable/B), based on the company's ability to pass our stress test for a rating above the sovereign stress test. We therefore affirmed our 'BB-' long-term issuer credit ratings on MTN and its subsidiary, Mobile Telephone Networks Holdings Ltd. (MTN Holdings), our 'BB-' issue

...- High-growth markets and solid competitive positioning, resulting in resilient cash flow generation and proceeds from its asset realization program, support MTN Group Ltd.'s (MTN's) robust operational performance and deleveraging. - We forecast the weighted-average funds from operations (FFO)-to-EBITDA ratio will remain commensurate with the current rating, at 45%-60% adjusted by S&P Global Ratings using 2022-2024 forecasts. - We cap our rating on MTN at two notches above our weighted foreign currency sovereign ratings on South Africa (##-/Positive/B) and Nigeria (B-/Stable/B), based on the company's ability to pass our stress test for a rating above the sovereign stress test. - We therefore affirmed our '##-' long-term issuer credit ratings on MTN and its subsidiary, Mobile Telephone Networks Holdings Ltd. (MTN Holdings), our '##-' issue rating on the senior unsecured bonds issued by MTN (Mauritius) Investments Ltd., and our 'zaAA' long-term South Africa national scale ratings on MTN...

Research Update