Telecom Service Provider MTN Group 'BB+' Ratings Affirmed; Outlook Negative

On Nov. 24, 2017, we lowered our long-term foreign currency sovereign credit rating on South Africa to 'BB' from 'BB+' and revised our outlook to stable. In our view, the sovereign downgrade reflects increased risks to South Africa-based MTN Group, including the potential impact of weaker economic growth on its revenues and credit metrics. However, we see a modest reduction in MTN's combined sovereign risk in South Africa and Nigeria, since revenues from the riskier Nigerian market have decreased, due to a weakening of the naira. We are therefore affirming our 'BB+' ratings on MTN and its senior unsecured debt. The outlook remains negative, reflecting the possibility that we could downgrade MTN over the next year if weaker market conditions

...+ On Nov. 24, 2017, we lowered our long-term foreign currency sovereign credit rating on South Africa to '##' from '##+' and revised our outlook to stable. + In our view, the sovereign downgrade reflects increased risks to South Africa-based MTN Group, including the potential impact of weaker economic growth on its revenues and credit metrics. + However, we see a modest reduction in MTN's combined sovereign risk in South Africa and Nigeria, since revenues from the riskier Nigerian market have decreased, due to a weakening of the naira. + We are therefore affirming our '##+' ratings on MTN and its senior unsecured debt. + The outlook remains negative, reflecting the possibility that we could downgrade MTN over the next year if weaker market conditions in South Africa constrain MTN's liquidity or faster growth in Nigeria shifts MTN's primary exposure back to Nigeria on a sustainable basis. PARIS (S&P Global Ratings) Dec. 4, 2017--S&P Global Ratings said today that it has affirmed its '##+'...

Ratings Action