MTN impresses Fitch
Fitch Ratings had upgraded MTN’s long-term rating to AA minus from A plus in recognition of a more stable outlook for Africa’s largest cellphone operator, the ratings agency said yesterday. The rating takes into account the high risk of a number of the countries where MTN operates.
In many of these countries, the economic, regulatory and political environments were often fragile, commensurate with an emerging market profile, Fitch said. The rating was supported by the hefty cash flow, low leverage and strong liquidity position of MTN in South Africa.
MTN is in talks with Indian-based Reliance Communications for a potential buyout or merger. This forms part of the company’s expansion into emerging markets beyond Africa and the Middle East. Fitch might review the rating if the talks result in a merger or an acquisition.
Business Report
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