Fitch Ratings has assigned IHS Holding Limited (IHS Holding) a first-time Long-Term Issuer Default Rating (IDR) of 'BB-' with a Stable Outlook and a senior unsecured instrument rating of 'BB-' with a Recovery Rating of 'RR4'.
Fitch also placed IHS Netherlands Holdco B.V.'s (IHS Netherlands) 'B' IDR and senior unsecured instrument ratings on Rating Watch Positive (RWP), following the recent consent solicitation to bond holders to expand the current bond's restricted group (Nigerian operations) to include the IHS Holding group.
If consent is obtained, Fitch expects to upgrade both the Long-Term IDR and senior unsecured ratings of IHS Netherlands to the same level of IHS Holding's ratings, in line with Fitch's 'Parent and Subsidiary Linkage Rating Criteria', and simultaneously withdraw the Long-Term IDR on IHS Netherlands
The ratings of IHS Holding reflect the foreign-exchange (FX) risk associated with the mismatch between indebtedness (mostly in US dollar) and cash flow (mostly in Nigerian naira) and inherent transfer and convertibility risk of Nigeria. However, we view IHS Holding's operations and resources outside of Nigeria as adequate to cover hard-currency (HC) debt servicing for a sufficiently long period to allow a two-notch uplift to the IDR from the current Nigerian Country Ceiling of 'B'.
