Research Update: Pan-African Telecommunications Provider MTN Group 'BB-' Rating Affirmed; Outlook Stable

MTN Group Ltd.'s S&P Global Ratings-adjusted debt to EBITDA declined to 2.0x at June 30, 2021, from 2.5x in 2019, driven by debt reduction using proceeds from its asset realization program (ARP) and solid cash flow, which was not materially affected by the pandemic; we expect the company to maintain this level sustainably. MTN's business risk profile has a solid underpinning; increasing diversification of business lines and fewer recent regulatory challenges somewhat offset the company's exit of selected markets and persistent exposure to jurisdictions with high country risk. We have affirmed our 'BB-' long-term issuer credit rating, and have revised our assessment of MTN's stand-alone credit profile (SACP)--which excludes our view of government influence and sovereign risk--to 'bbb-' from 'bb+'

...- MTN Group Ltd.'s S&P Global Ratings-adjusted debt to EBITDA declined to 2.0x at June 30, 2021, from 2.5x in 2019, driven by debt reduction using proceeds from its asset realization program (ARP) and solid cash flow, which was not materially affected by the pandemic; we expect the company to maintain this level sustainably. - MTN's business risk profile has a solid underpinning; increasing diversification of business lines and fewer recent regulatory challenges somewhat offset the company's exit of selected markets and persistent exposure to jurisdictions with high country risk. - We have affirmed our '##-' long-term issuer credit rating, and have revised our assessment of MTN's stand-alone credit profile (SACP)--which excludes our view of government influence and sovereign risk--to '###-' from '##+' based on a deleveraging balance sheet and our expectation that MTN will not revert to higher leverage levels. - Our stable outlook reflects that the blended sovereign rating of 'B', above...

Research Update