Agusto & Co. Upgrades MTN Nigeria’s Credit Rating to Aa+
The rating agency said the upgrade reflects MTN Nigeria's very strong financial condition, supported by sustainable profitability, robust cash flows, improving leverage metrics, sound corporate governance practices and an experienced management team.
Agusto & Co. has upgraded the credit rating of MTN Nigeria Communications Plc to “Aa+” with a stable outlook, citing the telecommunications operator’s strong financial performance, resilient business model and leading position in Nigeria’s telecoms market.
The rating agency said the upgrade reflects MTN Nigeria’s very strong financial condition, supported by sustainable profitability, robust cash flows, improving leverage metrics, sound corporate governance practices and an experienced management team. According to Agusto & Co., these factors have strengthened the company’s overall credit profile and ability to sustain long-term growth.
The rating is also underpinned by MTN Nigeria’s dominant position in the Nigerian telecommunications industry. The company serves more than 70.2 million active mobile subscribers and 35.9 million data users, supported by a broad portfolio of spectrum licences, expanding 4G network coverage, an extensive distribution network and resilient operational strategies.
Agusto & Co. further highlighted the company’s growing fintech and financial services business as a positive driver of its credit profile. The agency noted the approval of MoMo Payment Service Bank Limited by the Central Bank of Nigeria and MTN Nigeria’s acquisition of a 5G spectrum licence from the Nigerian Communications Commission as key developments expected to support future growth and service expansion.
Despite the upgrade, Agusto & Co. said the rating remains constrained by ongoing regulatory risks facing the telecommunications sector and the potential for disruption in the rapidly evolving fintech and digital services market. However, the agency assessed these risks as low to medium in nature.
MTN Nigeria is a subsidiary of the MTN Group, which operates across 21 countries in Africa and the Middle East with more than 270 million subscribers. Agusto & Co. described the Nigerian business as strategically important to both the group and the country’s telecommunications industry, noting that it controls more than half of Nigeria’s telecom market and provides critical communications infrastructure that supports businesses and key sectors of the economy.
