July 2 (THEWILL) — MTN Nigeria Communications Plc has been upgraded to an Aaa long-term rating by Agusto & Co., the highest rating on the agency’s national scale, reflecting the telecom operator’s stronger earnings, improved liquidity and lower debt profile.
The rating agency also reaffirmed MTN Nigeria’s A1+ short-term rating with a stable outlook, according to a corporate filing submitted to the Nigerian Exchange on July 1.
The upgrade follows the recent affirmation of the company’s AAA(NG) long-term and A1+(NG) short-term ratings by Global Credit Rating Company (GCR), placing MTN Nigeria at the highest rating level from both agencies.
Agusto said the upgrade was driven by stronger-than-expected earnings recovery, robust operating cash flows, a healthy liquidity position, and the company’s leadership in Nigeria’s telecommunications market.
The agency also cited tariff adjustments, rising data consumption, and the full repayment of MTN Nigeria’s US dollar-denominated obligations, which significantly reduced foreign exchange risk and strengthened shareholders’ equity.
According to the company, it is currently the only non-financial institution with an active Aaa rating from Agusto.
Chief Executive Officer Karl Toriola described the rating action as recognition of the company’s financial recovery and disciplined balance sheet management.
“We are pleased with the upgrade of our long-term rating to Aaa, the highest on Agusto’s national scale. This outcome reflects the strength of our earnings recovery, the quality of our cash flows and disciplined balance sheet management”, he said.
The company’s financial performance supports the improved rating. Net cash generated from operating activities more than doubled to ₦2.21 trillion in 2025 from ₦868.9 billion a year earlier, while first-quarter 2026 operating cash flow rose 73.3 percent year-on-year to ₦764.1 billion.
MTN Nigeria also strengthened its balance sheet by aggressively reducing debt. Borrowings declined by nearly 25 percent in the first quarter of 2026 to ₦314.97 billion, while shareholders’ equity surged 64.7 percent to ₦903.94 billion.
The rating upgrade comes despite a sharp correction in the company’s share price during May and June. MTN Nigeria ended the first half of 2026 at ₦720 per share after retreating from a May peak of ₦820, as broader market profit-taking erased about ₦4.1 trillion in market value over two months.
Despite the selloff, the company remains Nigeria’s third most valuable listed firm, with investors continuing to view its long-term fundamentals as supported by higher data demand, recent tariff adjustments and its dominant position in the telecommunications market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
