Share

Fitch upgrades Transnet rating

Johannesburg - Transnet's credit rating was upgraded by Fitch Ratings agency on Wednesday, the company said.

Transnet's rating was changed from BB+ to BBB, confirming the success of efforts to strengthen its business and financial position, group CEO Brian Molefe said in a statement.

"This is in the midst of downgrades by other rating agencies."

He said the upgrade confirmed that Transnet had a robust execution plan and appropriate mitigating strategies for its investment programme.

It also affirmed Transnet’s ability to raise funds in the market on the strength of its balance sheet without government guarantees, which allowed the fiscus to focus on the country’s other pressing needs.

"The agency stated that Transnet’s credit profile benefits from its position in the country’s rail, port and pipeline services, with a long-term contract base and business diversification underpinning its strong operating cash flows," said Molefe.

Financial discipline

"This upgrade by Fitch Ratings confirms that Transnet has appropriate processes and controls to execute the market demand strategy."

Transnet planned to raise a third of the R307bn seven-year infrastructure investment programme from a variety of funding sources.

These included domestic and international bond markets, bank loans and export credit agencies, among others.

"The rest will be funded through cash generated from its operations," Molefe said.

"This endorsement of our hard work and financial discipline is encouraging."

He said Transnet was confident that its plans for the execution of the investment programme would enable it to maintain or improve its current credit rating.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.1%
Rand - Pound
23.92
-0.1%
Rand - Euro
20.43
+0.0%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders