Fitch Ratings has assigned South Africa’s MTN Group a long term foreign currency issuer default rating of ‘BBB’, saying the rating reflected the company’s leading market position in most of its markets.
Darshak Juta, supervisory analyst at Fitch Ratings SA, said the rating would be applicable to foreign investors analysing MTN.
“The strong position allows the group to secure the high-revenue subscribers and generate the cash flow necessary to re-invest in network quality and value-added products such as mobile banking,” the agency said.
HumanIPO reported earlier this month MTN’s National Long-Term Rating of AA(zaf) had been lowered to AA-(zaf) by Fitch as a result of its increased cash-based operation. The agency concluded cash generation from weak non-investment graded countries heightened MTN’s risk profile.
MTN is currently one of the operators bidding for one of two available telecommunications licences in Myanmar and has previously said they are looking at spending up to US$8 billion on acquisitions.
