S&P turns IHS outlook to positive

S&P said it revised its outlook for IHS Holding Ltd. to positive from stable and affirmed the B ratings on the issuer and its unsecured debt.

“We expect higher earnings diversification will pave the way for positive ratings momentum for IHS to the extent that exposure to Nigeria reduces further. IHS recently acquired 5,701 towers in South Africa from pan-African telecommunications player MTN Group Ltd. (BB-/stable/--) and 2,115 towers in Brazil from Sao Paulo Cinco Locacao de Torres Ltda. These transactions bring the company's total tower count to 39,052 and the number of its countries of operations to 11, which considerably increases IHS' scale and improves its geographic and earnings diversity,” the agency said in a press release.

S&P said it could raise IHS’ ratings in the next 12 months if it keeps diversifying its earnings base outside of Nigeria, which would reduce its exposure to Nigerian transfer and convertibility risk.

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