Sanral’s credit rating downgraded
Ratings agency Moody’s Investor Services has downgraded the credit ratings of the South African National Roads Agency (Sanral).
The agency downgraded Sanral’s long-term local and foreign currency global scale ratings to Ba2, from Ba1, with the outlook accorded as negative and the short-term global scale affirmed as not prime.
Further, Moody’s downgraded the long-term national scale rating to A1.za from Aa3.za and affirmed the short-term national scale rating of P-1.za; with the outlook accorded as negative.
The rating reflects Sanral’s ongoing liquidity pressure, which is amplified by the national government’s decision to further delay its announcement on the long-term solution to the Gauteng Freeway Improvement Project (GFIP) funding model.
Sanral said in a statement on Monday that its ratings could be stabilised if the government could resolve the GFIP long-term funding model in a way that would allow the roads agency to honour its financial commitments.
Although Moody’s acknowledged the government decision in March to approve an un-earmarked additional transfer of R1.9-billion to Sanral to fund the GFIP project, the raods agency still needs a further R3.9-billion until March 2019.
Further, Sanral said that the lack of timely government support had increased the GFIP’s operational risks and had created uncertainty on the future of the open road tolling model. The group also warned that its ratings could be further downgraded.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOMDeveloped to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
