MTN Nigeria Secures Top Aaa Rating From Agusto as Earnings Recovery Strengthens

The rating agency upgraded MTN Nigeria’s long-term rating from Aa+ to Aaa while affirming its short-term rating at A1+ with a stable outlook, according to a corporate disclosure released by the company.

The latest development comes shortly after Global Credit Rating Company (GCR) reaffirmed MTN Nigeria’s AAA(NG) long-term and A1+(NG) short-term ratings, placing the telecommunications company among the highest-rated corporates in Nigeria.

Agusto attributed the rating upgrade to MTN Nigeria’s stronger-than-expected earnings recovery, supported by tariff repricing, increased data consumption and reduced foreign exchange pressure following the full repayment of the company’s US dollar-denominated obligations.

The agency also highlighted MTN Nigeria’s strong operating cash flow generation, healthy liquidity position, low leverage profile and leadership in Nigeria’s telecommunications industry.

According to Agusto, MTN Nigeria is currently the only non-financial institution with an active Aaa rating on its national scale.

Commenting on the upgrade, MTN Nigeria Chief Executive Officer, Karl Toriola, said the latest rating reflects the company’s resilient business model, disciplined balance sheet management and improving earnings profile.

“We are pleased with the upgrade of our long-term rating to Aaa, the highest on Agusto’s national scale. This outcome reflects the strength of our earnings recovery, the quality of our cash flows and disciplined balance sheet management. Holding the highest ratings from both leading rating agencies underscores the resilience of our business and the strength of our financial position. We remain focused on sustaining this momentum and delivering long-term value to our stakeholders,” Toriola said.

The latest rating follows MTN Nigeria’s continued efforts to strengthen its financial position after navigating foreign exchange-related pressures that affected profitability in previous periods. With the settlement of its foreign currency obligations and stronger operating performance driven by higher tariffs and growing demand for data services, the company has significantly improved its balance sheet and financial flexibility.

The upgrade is expected to reinforce investor confidence in MTN Nigeria while strengthening its ability to access funding on favourable terms in the domestic capital market if required.

MTN Nigeria currently serves more than 87 million subscribers across the country and remains one of Africa’s largest telecommunications operators through the MTN Group, which operates in 16 countries across Africa and the Middle East.