TCTA welcomes latest positive outlook by Moody’s
State-owned Trans Caledon Tunnel Authority (TCTA) on Monday said that ratings agency Moody has reaffirmed the positive outlook on TCTA’s water infrastructure projects, having moved from s stable to positive outlook in the latest credit opinion, issued on May 27.
The projects include the Berg River Voëlvlei augmentation scheme, the Vaal River Eastern sub-system augmentation project, the Komati water scheme augmentation project, the Mokolo Crocodile River (West) water augmentation project, the Berg water project and the Vaal river system.
In issuing its report, Moody’s notes that the ratings reflect a top-down notching from the South African government’s rating based solely on support.
“In our view, it is not possible to meaningfully assess the project's credit profile on a standalone basis, given the close operational and financial links with the South African government and TCTA's public policy mandate with limited autonomy,” it said in a statement.
TCTA CEO Percy Sechemane welcomed the opinion by the ratings agency.
“While the latest positive rating is as a result of the improved sovereign rating, it also symbolises a strong vote of confidence in the entity relative to the sovereign.”
TCTA is mandated with financing and implementing bulk raw water infrastructure projects, acting as an implementing and funding agent on behalf of the Department of Water and Sanitation.
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