Moody’s: IHS Netherlands CFR B1, notes Ba3

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to IHS Netherlands Holdco BV, a holding company that owns 100% of IHS Nigeria Ltd. and IHS Towers NG Ltd., formerly Helios Towers Nigeria Ltd.

At the same time, the agency assigned a Ba3 rating with a loss given default (LGD) assessment of LGD2 to IHS' proposed $800 million senior unsecured guaranteed notes due 2021.

Proceeds will be used to repay existing debt and provide around $122 million in cash to fund the construction of new towers.

The outlook is stable.

"The B1 corporate family rating reflects IHS' leading position as a mobile communications tower operator in Nigeria, with 6,351 towers generating stable cash flow, and largely contracted from Nigerian subsidiaries of international telecommunications service providers rated Baa3 and above," Moody's assistant vice president and analyst Douglas Rowlings said in a news release.

"IHS has also proven to be a robust and efficient tower operator, in a country that suffers continual power disruptions, as well as security challenges."

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