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LequteMan
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The credit rating of MTN Group Ltd., Africa’s largest phone company, has been cut by Moody’s Investors Service because of the uncertainty following a hefty $3.9 billion fine imposed on it by the Nigeria Communications Commission, NCC.
MTN's rating was lowered to Baa3 from Baa2, Ivan Palacios, an analyst at Moody’s in Madrid, said on Tuesday. The outlook is negative, signaling further rate cuts are possible. Fitch cut MTN’s rating one level to BBB- last week because of risks in Nigeria and South Africa. The outlook remains stable at Fitch. The company has a BBB- rating at Standard & Poor’s.
The change reflects “the increased operational and sovereign risks from one of its key markets, Nigeria,” Palacios said according to Bloomberg.
“The outlook could be stabilized if matters surrounding the Nigerian fine are clarified and resolved with limited or manageable implications to MTN’s Nigerian and group operations as well as to their credit and liquidity profiles," he added.
MTN was fined MTN $3.9 billion for failing to switch off unregistered mobile-phone customers, which was revised down from an original penalty of $5.2 billion.
MTN's rating was lowered to Baa3 from Baa2, Ivan Palacios, an analyst at Moody’s in Madrid, said on Tuesday. The outlook is negative, signaling further rate cuts are possible. Fitch cut MTN’s rating one level to BBB- last week because of risks in Nigeria and South Africa. The outlook remains stable at Fitch. The company has a BBB- rating at Standard & Poor’s.
The change reflects “the increased operational and sovereign risks from one of its key markets, Nigeria,” Palacios said according to Bloomberg.
“The outlook could be stabilized if matters surrounding the Nigerian fine are clarified and resolved with limited or manageable implications to MTN’s Nigerian and group operations as well as to their credit and liquidity profiles," he added.
MTN was fined MTN $3.9 billion for failing to switch off unregistered mobile-phone customers, which was revised down from an original penalty of $5.2 billion.
