MTN Nigeria says Global Credit Rating Co. (GCR) affirms its ‘AAA’ long-term and ‘A1+’ short-term national issuer ratings, while revising its outlook from Negative to Stable, marking a turnaround linked to improved profitability, reduced foreign currency exposure, and stronger liquidity.
The telecoms giant discloses the development in a regulatory filing submitted to the Nigerian Exchange Limited (NGX) this week, stating that the revised ratings reflect renewed investor confidence and an improved financial position.
“GCR also affirms the national scale long-term issue ratings of AAA assigned to all outstanding series of the company’s senior unsecured bond issuances. Notably, the rating outlook has been upgraded to Stable from Negative,” MTN Nigeria says in the statement seen by Technology Times.
“Our improved earnings trajectory,” the MTN Nigeria CEO, “driven by resilient demand for our services, positions us well for sustained growth in the current economic environment.”
GCR attributes the upgrade to MTN Nigeria’s enhanced cash flow generation and sustained revenue growth, driven by increasing demand for data and digital services.
The agency, which previously issued a Negative outlook in 2024 due to concerns over FX illiquidity, inflation, and market volatility, now points to stabilising financial fundamentals following a series of corrective internal and regulatory actions.
Liquidity, earnings trajectory improve
According to the filing, MTN Nigeria’s liquidity profile strengthens significantly with “a sizeable cash balance and adequate coverage of near-term obligations,” despite a negative equity position.
Karl Toriola, Chief Executive Officer of MTN Nigeria, describes the ratings affirmation and improved outlook as a vote of confidence in the company’s turnaround strategy.
“We are encouraged by the affirmation of our ratings and the upgrade of our outlook to stable, which reflects the progress we have made in strengthening our financial position and returning the business to profitability,” Toriola says.
“Our improved earnings trajectory,” the MTN Nigeria CEO, “driven by resilient demand for our services, positions us well for sustained growth in the current economic environment.”
MTN Nigeria posts ₦133.7 billion profit after tax in Q1 2025, a reversal from the ₦392.7 billion loss recorded in the same period of 2024. The prior year’s loss is mainly attributed to foreign exchange losses triggered by the Central Bank of Nigeria’s (CBN) naira devaluation and FX unification policies implemented in mid-2023.
Sector-wide adjustments drive outlook
The company’s recovery coincides with broader regulatory developments, including the Nigerian Communications Commission’s (NCC) approval of telecoms tariff reviews in January 2025. The new framework permits mobile network operators to increase prices by up to 50% on selected voice and data packages, helping them offset operational costs impacted by inflation and the weakening naira.
MTN Nigeria says the outlook upgrade by GCR reinforces confidence in its strategic positioning as it navigates Nigeria’s challenging macroeconomic landscape.
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