Fitch rates MTN Group BBB

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BBB to MTN Group Ltd.

The outlook is stable.

The ratings reflect MTN's leading market position in most of the markets in which it operates, Fitch said.

The strong position allows the group to secure the high-revenue subscribers and generate the cash flow necessary to re-invest in network quality and value-added products such as mobile banking, the agency said.

MTN's business risk profile is heightened through its operational exposure to non-investment-grade countries, Fitch said. In particular, the group's largest contributor of cash flow is Nigeria, which comprises 38% of consolidated EBITDA, the agency added.

While such countries typically have solid mobile prospects given low mobile penetration rates and non-existent fixed-line infrastructure, the operations are susceptible to political instability and unpredictable regulatory authorities, Fitch said.

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