Photo by: Duane Daws
State-owned freight logistics group Transnet reported on Tuesday that S&P Global Ratings had affirmed its long-term foreign currency rating at 'BBB-' and its local currency rating at 'BBB+'.
The affirmation follows S&P’s June 3 decision to affirm South Africa’s long- and short-term 'BBB-/A-3' foreign currency and 'BBB+/A-2' local currency sovereign credit ratings, allowing the country to avoid being downgraded to junk, despite its poor growth performance and outlook.
Transnet’s investment-grade rating is viewed as important, owing to the fact that the utility raises funds on the strength of its own balance sheet, in the absence of State funding or guarantees.
The rail, ports and pipelines operator is currently part funding the execution of a R380-billion, ten-year infrastructure investment programme with debt raised both locally and abroad.