International ratings agency Standard & Poor’s (S&P) has affirmed its rating for Transnet’s long-term foreign currency at ‘BBB-‘ and ‘BBB+’ for local currency.
S&P said it was optimistic that Transnet’s financial credit metrics would remain in line with the ratings agency’s assessment of the company’s stand-alone credit profile at bbb+ even as the company executes its R380 billion rolling 10-year infrastructure investment programme in a challenging economic environment. The ratings agency said it believes Transnet would continue to execute its infrastructure investment programme in a prudent manner, taking into account market variations. Furthermore, the ratings agency said Transnet’s rail, ports and pipeline businesses pose relatively low risk compared with its counterparts in Europe, the Middle-East, and North Africa.It added that Transnet’s risk management framework, relationships with financial institutions and ability to tap into unused credit facilities would enable it to meet its commitments.
Transnet has a stand-alone investment grade and raises funds on the strength of its balance sheet. It receives no funding or guarantees from the national fiscus. Transnet will announce its year-end financial results next week in Johannesburg.