MTN’s CEO, Karl Toriola, explains impact of Global Credit Ratings
Global Credit Ratings (GCR), the African Arm of the New York Stock Exchange-listed Duff & Phelps, recently upgraded the national scale long-term issuer rating of MTN Nigeria to AAA and affirmed the national scale short-term rating of A1+, with a stable outlook.
GCR ratings framework is based on a numerical scoring system, between 0 (weakest) and 40 (strongest) is applicable for all corporate, financial institution, insurance and public sector ratings
In addition, GCR also upgraded the national scale long-term rating of the recently concluded N110 billion Series 1 Senior Unsecured Bond to AAA with a stable outlook.
GCR says “the ratings accorded to MTN Nigeria reflect its very strong competitive position as the leading provider of telecommunications services in Nigeria, as well as its strong earnings and cash flow which has supported a robust financial profile.”
According to Investopedia, a credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
Commenting on the rating, Karl Toriola, Chief Executive Officer, MTN Nigeria, said, “We are delighted with the outcome of the GCR rating. This demonstrates the resilience of our business and positions MTN Nigeria as the benchmark of reference for the information and communications technology sector for long-dated, fixed-term instruments. As we continue to invest in our network and strengthen our risk management processes, we remain focused on sustaining and accelerating growth in line with our Ambition 2025 strategy.”
Toriola in a recent interview with AriseTV further explains the impact of the rating and why it matters
