Nigeria’s first credit Rating Agency and one of pan African leaders in credit reports, Agusto & Co. Limited has assigned an Aa+ rating to MTN Nigeria Communications Plc. According to a statement made available to THISDAY, the rating assigned to MTN Nigeria Communications Plc was based on the fact that MTN Nigeria is the largest mobile operator in Nigeria, with over sixty million subscribers and 20.3 million active data users, controlling about 42 per cent of the Nigerian telecommunications industry’s subscribers.
The statement explained: “The firm’s strong financial condition, which is characterized by very good profitability, strong cash flow, low leverage and experienced and stable management team.”
“Also the rating takes into cognizance MTN’s market leadership, its extensive network coverage and growing voice subscribers as well as active data users.
“MTN Group has a strong presence in twenty countries and over two hundred and thirty seven million subscribers, “In May 2019, MTN became a public limited liability company following its listing by introduction of 20,354,513,050 ordinary shares of ₦0.02 each on the Nigerian Stock Exchange to comply with regulatory requirement.
“However, we note that MTN Nigeria is prone to regulatory interference, which has led to volatility in its profitability in recent years.