S&P puts MTN Group on watch

S&P said it placed its BB+ foreign and local currency long-term issuer credit ratings on MTN Group Ltd. and its subsidiary, Mobile Telephone Networks Holdings Ltd., on CreditWatch with negative implications.

S&P also placed its foreign currency long-term issue rating on senior unsecured bonds issued by MTN (Mauritius) Investments Ltd on CreditWatch negative.

The agency has affirmed its South Africa national scale ratings on MTN at zaAAA.

“The CreditWatch placements follow MTN's announcement on Aug. 30, 2018, that the Central Bank of Nigeria (CBN) alleges MTN Nigeria had repatriated $8.1 billion of dividends improperly, and the subsequent announcement by MTN on Sept. 4, 2018, that the Nigerian Attorney General (AG) had raised $2.0 billion in tax claims against MTN Nigeria,” S&P said in a news release.

“The AG subsequently also directed that the payment of the $8.1 billion be dealt with through the office of the AG, rather than as directed by the CBN in its original letter to MTN Nigeria.”

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