Sanral — and SA — cannot afford a Moody’s downgrade
With only 55% of South Africans paying their e-tolls, there is far too much at stake for the rest to indulge their personal anger, writes Inge Mulder
May is an important month for the South African National Roads Agency (Sanral). We will know early in the month how many road users have responded positively to the offered discount of 60% on outstanding e-toll debt — and what effect this will have on Moody’s Investor Service when they review the agency’s credit rating, due in June. If Moody’s is not happy with the debt collection, a downgrade is a near certainty, which will mean higher costs for Sanral and thus less money for construction and maintenance, as well as a reduced ability to draw investors. And if SA is moved down to junk status, it will be equally bad. Due to our direct government support, this could mean a downgrade in any event. The next weeks are vital. Moody’s has warned that a Sanral downgrade is on the cards because of its "inability to effectively enforce e-toll payments, leading to deteriorating cash flows and increased borrowing needs". The public mood, though, has begun to change. Of those contacted for colle...
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