Another downgrade for SA would means another blow for Sanral
Sanral’s credit rating is downgraded along with SA’s and is perceived by investors as a negative indication on its ability to service its debt
The world is moving forward and so is the pace and scale of inter-connectedness. Developments such as the global economic crisis and sovereign credit reviews by independent international credit rating agencies have important implications for domestic economies such as SA’s. At the South African National Roads Agency (Sanral), we have seen how the global economic crisis puts pressure on sources of financing for the country. This renewed focus on the country, and indeed on Sanral, has reinforced the need for us to take a long-term view of our finances and focus our efforts on retaining investor confidence. Funding is the lifeblood of Sanral operations. Whether it is the non-toll operation, which relies exclusively on the fiscus for funding, or the toll operation which sources financing from the capital markets, Sanral cannot effectively discharge its mandate to manage, finance, and maintain SA’s road network without a stable income stream. Nothing seems more damaging to this than the ...
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