Transnet faces ratings downgrade by S&P
Ratings agency expects the state-owned entity’s debt to balloon to R151bn in 2025
Ratings agency S&P Global has put cash-strapped Transnet on CreditWatch, putting the entity at greater risk of a credit downgrade — just months after the Treasury said it would not grant any further bailouts to state-owned entities (SOEs), including the freight and rail group.
S&P in its latest review on Transnet said while it expected the entity’s operational performance to improve, this would not be completed by robust growth in cash flow — with the group’s capital expenditure requirements and debt servicing costs remaining elevated, and in its view “leaving limited room for operational underperformance”...
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