Fitch downgrades MTN

Fitch Ratings said it downgraded MTN Group Ltd.’s long-term issuer default rating to BBB- from BBB.

The outlook is stable.

The company’s national long-term rating also was affirmed at AA-(zaf) and its national short-term rating was affirmed at F1+(zaf).

The senior unsecured rating on MTN Holdings (Pty) Ltd. also was affirmed at AA-(zaf).

The downgrade follows the recent rating action on South Africa's sovereign ratings, Fitch said.

Along with the impact of a fine from the Nigerian telecoms regulator, these factors are assessed to have increased operational risk to MTN in its two key markets, the agency said.

The downgrade of South Africa highlights the macroeconomic risks to groups focused on emerging markets while the fine and challenges in Nigerian dividend repatriation also evidences higher operational- and regulatory-risks in these regions, Fitch said.

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