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Agusto & Co, Nigeria’s first credit rating agency, has assigned an Aa+ rating to MTN Nigeria Communications Plc.
According to Agusto, the rating assigned to MTN Nigeria Communications Plc was based on the fact that the teleco is the largest mobile operator in Nigeria, with over 60 million subscribers and 20.3 million active data users, controlling about 42 percent of the Nigerian telecommunications industry’s subscribers.
“The firm’s strong financial condition is characterized by very good profitability, strong cash flow, low leverage, experienced and stable management team,” the report said.
The credit rating represents the creditworthiness of corporate or government bonds. The ratings are used by investment professionals to assess the likelihood the debt will be repaid.
An Aa+ rating for MTN means the telecom has a very strong capacity to meet its financial commitments.
MTN Nigeria is a member of the MTN Group, Africa’s leading telcos with strong presence in 21 countries and over 237 million subscribers. In May 2019, MTN became a public limited liability company following its listing by introduction of 20,354,513,050 ordinary shares of N0.02 each on the Nigerian Stock Exchange (NSE) to comply with regulatory requirements.
Agusto & Co. is also a leading provider of economic and business information, licensed in 2001 by the Securities & Exchange Commission (SEC) as Nigeria’s First Rating Agency. It publishes reports on key industries in Nigeria and other countries in sub-Saharan Africa.