MOBILE TELEPHONE NETWORKS HOLDINGS LIMITED - Credit Rating Placed on CreditWatch by S&P Global Ratings - BIMTN

Credit Rating Placed on CreditWatch by S&P Global Ratings - BIMTN

MOBILE TELEPHONE NETWORKS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1993/001411/06)
(“MTNH”) or (“the Company”)


MTN Group Limited-Credit Rating Placed on CreditWatch by S&P
Global Ratings (“S&P”)


On 20 September 2018, S&P Global Ratings (S&P) placed its ‘BB+’
foreign and local currency long-term issuer credit ratings on
South Africa-based MTN Group Limited(“MTN”) and its subsidiary
being the issuer, Mobile Telephone Networks Holdings Limited
(MTNH)on CreditWatch negative.
S&P has also placed their long-term issue rating on senior
unsecured notes issued by MTN Investment Limited (Mauritius) on
CreditWatch negative.
The South Africa national scale ratings on MTN have been affirmed
at ‘zaAAA’.
The CreditWatch placements by S&P follow the recent SENS
released by MTN on 30 August 2018 and 4 September 2018, in
relation to the announcements made by the Central Bank of Nigeria
(“CBN”) and the Nigerian Attorney General, respectively.

S&P’s CreditWatch placement rationale is based on the
uncertainty with regards to these recent announcements and the
potential implications on MTN’s credit profile since MTN Nigeria
Communications Limited (“MTN Nigeria”) is a significant
contributor to MTN's EBITDA (about 30%).

According to S&P, the announcement reflects a material increase
in risk to the ratings, primarily as a result of reduced
consistency of Nigerian government policy implementation in
relation to MTN.

MTN’s Management remain resolute that MTN Nigeria has not
committed any offences and will vigorously defend its position.
MTN’s Management will continue to engage with the relevant
authorities on all these matters and will provide further
information as and when available.

Detailed information pertaining to the issuer’s ratings can be
viewed on the Rating Agency’s website:
www.standardandpoors.com/ratingsdirect

25 September 2018
Debt Sponsor: The Standard Bank of South Africa Limited, acting
through its Corporate and Investment Banking division.

Date: 25/09/2018 05:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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