Fitch affirms MTN

Fitch Ratings said it affirmed MTN Group Ltd.'s national long term rating at A+(zaf) with a stable outlook.

The agency said that the rating affirmation reflects MTN's continued strong operating margins, healthy cash flows, moderate leverage and strong liquidity.

Following the July 2006 acquisition of Investcom, MTN's key credit metrics have improved in line with expectations, Fitch said, noting that MTN's operating EBITDAR ratio increased to 44.9% in the six moths to June (44% in FY06), with free cash flows of ZAR3.4 billion generated in the six months ended June (FY06: ZAR6.9 billion).

The rating also takes into account the high country risks attached to many of MTN's markets, the agency added.

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