More troubles for MTN Group
Fitch Revises MTN Group's Outlook to Negative on Nigerian Fine Published on: 2nd Nov 2015 Fitch Ratings has revised the Outlook on MTN Group's debt ratings to Negative from Stable and affirmed the IDR at 'BBB'. The Negative Outlook reflects the risk of a significant cash outflow due to a substantial fine imposed on MTN's Nigerian operations, which could increase leverage and pressure MTN's credit metrics. These developments in Nigeria highlight the risk MTN is exposed to in operating in a variety of emerging market countries. Nigerian Fine MTN has announced that NCC, the Nigerian telecoms regulator, has imposed a fine equivalent to USD5.2bn on MTN Nigeria. Fitch said that it understands that management remains in discussion with NCC as to the size and timing of the payment of the fine. If the fine is confirmed as initially announced by the group and is payable in the short term, it could result in negative rating action. Reduced Dividends fr...