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.