International ratings agency S&P has downgraded MTN to junk following increased risk to it on the back of trouble in Nigeria.
MTN has not commented, save to alert the market on Monday.
The ratings agency says in a statement released on Friday that the downgrade reflects increased country risk in Nigeria, MTN's largest market. It follows its downgrade of Nigeria in the middle of last month further into junk.
“In our view, Nigeria's economy has weakened due to a marked contraction in oil production, a restrictive foreign exchange regime, and delayed stimulus. MTN has material exposure to Nigeria and South Africa.”
Nigeria, MTN’s largest market, accounts for 37 percent of revenue, while South Africa accounts for a quarter.
S&P says it considered MTN's exposure to potential legal and regulatory risks and its ability to maintain sufficient liquidity in a sovereign default scenario.
Rest at source: IOL.co.za
Link: http://www.iol.co.za/business/companies/mtn-downgraded-to-junk-2075320
MTN has not commented, save to alert the market on Monday.
The ratings agency says in a statement released on Friday that the downgrade reflects increased country risk in Nigeria, MTN's largest market. It follows its downgrade of Nigeria in the middle of last month further into junk.
“In our view, Nigeria's economy has weakened due to a marked contraction in oil production, a restrictive foreign exchange regime, and delayed stimulus. MTN has material exposure to Nigeria and South Africa.”
Nigeria, MTN’s largest market, accounts for 37 percent of revenue, while South Africa accounts for a quarter.
S&P says it considered MTN's exposure to potential legal and regulatory risks and its ability to maintain sufficient liquidity in a sovereign default scenario.
Rest at source: IOL.co.za
Link: http://www.iol.co.za/business/companies/mtn-downgraded-to-junk-2075320