Fitch Ratings has affirmed the long-term issuer default rating of Helios Towers Nigeria Limited, HTN, at ‘B’ with a stable outlook, following its planned acquisition by IHS Holding Limited (IHS).
The global rating agency explained in a statement, on Monday, March 14, that it anticipates that the acquisition would lead to a stronger market position in Nigeria for the enlarged entity, saying that it does not expect the HTN ratings to be downgraded as a result of the transaction.
According to Fitch, HTN’s operating and financial performance results for nine months ending September 2015 showed good progress in-line with its forecasts.
“We also do not expect HTN’s rating to be affected if Fitch’s Nigerian sovereign rating (BB-/Negative) is downgraded by one notch to ‘B+’, as long as HTN’s cash flow generation remains robust and liquidity remains intact,” it added.
IHS plans to acquire the entire issued share capital of HTN from HTN Towers Plc, which is ultimately owned by HTN’s current shareholders including Helios Investment Partners.
“This transaction strengthens IHS’s position as the leading tower company in Nigeria. IHS believes combining its operations with HTN’s in Nigeria would result in meaningful synergies. Impact on HTN Bondholders IHS says it is committed to maintaining the existing relationship and position with HTN’s bondholders,” Fitch added.
