Transnet says well-positioned to withstand downgrade
Standard & Poor’s (S&P’s) Global Ratings has downgraded Transnet’s long-term foreign currency sovereign credit rating from BBB- to BB+, in line with its assessment of the sovereign rating.
S&P’s, however, maintained Transnet’s standalone credit profile at bbb, which the parastatal said reflected its strong financial metrics and adequate liquidity.
CEO Siyabonga Gama said S&P’s affirmation and acknowledgement of the critical role that Transnet plays in South Africa's economy as a provider of essential infrastructure services was testament of the strong and agile manner in which Transnet management was navigating the tough macroeconomic challenges.
About 26% of Transnet’s debt portfolio had a credit rating clause with a trigger below subinvestment grade. Between May and November 2016, management negotiated with its lenders to lower and relax the credit rating default triggers to below subinvestment grade.
Transnet CFO Garry Pita further pointed out that the entity had secured more than R16-billion in unused short-term credit facilities that were available within 24 hours, as well as long-term specific committed funding in excess of R15-billion.
“We also have access to the domestic and global capital markets through the domestic medium-term note and global medium-term note programmes amounting to R93-billion to meet funding commitments.”
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points
VISIT SHOWROOM
Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...
VISIT SHOWROOM
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
