Moody’s assigns Baa2 to MTN notes

Moody's Investors Service said it affirmed MTN Group Ltd.’s Baa2 local currency global scale issuer rating and A1.za national scale issuer rating and assigned a provisional Baa2 rating to the proposed long-term guaranteed unsecured notes to be issued by MTN (Mauritius) Investments Ltd.

The outlook is stable.

The proposed notes will be irrevocably and unconditionally guaranteed by its 100% parent company, MTN Group; Mobile Telephone Networks Holdings Pty. Ltd.; MTN International (Mauritius) Ltd.; MTN International Pty. Ltd.; Mobile Telephone Networks Pty. Ltd.; and MTN Treasury Ltd.

"Proceeds from the bond issuance will be used for general corporate purposes, strengthening its liquidity profile and positioning the group to take advantage of potential growth opportunities that may arise," Dion Bate, Moody's vice president, senior analyst and local market analyst for MTN, said in a news release.

Furthermore, given MTN's current low consolidated adjusted debt to EBITDA of 0.96 times an issuance of up to $750 million will not have a material negative impact on MTN's credit profile, the agency said.

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