Moody's Rating May Downgrade MTN Group Over Nigeria's Woes

Moody's Rating Agency may downgrade South African telecoms giants MTN after the mobile phone operator was slammed with $10.1 billion by Nigerian government this week, the rating agency has said.
Moody's said the mobile firm is under review for a possible credit rating downgrade as a result of itts woes in Nigerian.

“MTN’s ratings have been placed on review for downgrade to reflect the uncertainty around the potential implications of the recent CBN and NAG announcements on MTN’s credit profile,” Moody’s said.

Africa’s biggest wireless phones group said on Tuesday the Nigerian Attorney General (NAG) was seeking $2 billion in taxes incurred over the last decade, days after an order from the Central Bank of Nigeria (CBN) that MTN’s Lagos-based unit hand over $8.1 billion that it said was illegally sent abroad.
MTN, whose debt stands at around $3.7 billion, has said the CBN’s allegations are without merit and it would hold talks with authorities to defend its position.
Moody’s, which already has junk rating on MTN debt at Ba1, said without the demand for the refund and the potential tax shortfall MTN would be able to repay approaching debt maturities over the next 12 to 18 months.