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Cape Town - The SA National Roads Agency Limited's (Sanral's) debt of R41bn could be put in jeopardy by motorists' non-payment for e-tolls, spokesperson Vusi Mona told Fin24.
However, Mona said that non-payment as a result of non-compliance by motorists will not affect the agency's financial health because only 16% of its portfolio is tolled.
"If we have a significant number of people who do not comply, it may affect our ability to repay the debt," he said.
"It will also affect the existing toll road portfolio, its maintenance and asset preservation actions."
Mona added that Sanral is of the view that the majority of South Africans are law-abiding citizens who will pay for the benefit of using the Gauteng Freeway network.
"We are confident of meeting our debt obligations", he added.
"The improved rating by Moody's Investors Service a few days after toll commencement, though still negative, is an indication of a modest step in the right direction".
In September Sanral suffered its third credit rating downgrade by Moody's.
The ratings agency cited deterioration in Sanral's cash flow stemming from the prolonged delay in the realisation of e-toll revenue.
Sanral's R41bn debt is a slightly higher figure than predicted by Moody's in September, which estimated Sanral's debt stock to total R39bn in 2014.
After e-tolls came into effect in Gauteng earlier this month, Moody's confirmed Sanral's rating with a negative outlook.
Moody's said the negative outlook took into account the operational risks relating to e-toll collection.
- Fin24
However, Mona said that non-payment as a result of non-compliance by motorists will not affect the agency's financial health because only 16% of its portfolio is tolled.
"If we have a significant number of people who do not comply, it may affect our ability to repay the debt," he said.
"It will also affect the existing toll road portfolio, its maintenance and asset preservation actions."
Mona added that Sanral is of the view that the majority of South Africans are law-abiding citizens who will pay for the benefit of using the Gauteng Freeway network.
"We are confident of meeting our debt obligations", he added.
"The improved rating by Moody's Investors Service a few days after toll commencement, though still negative, is an indication of a modest step in the right direction".
In September Sanral suffered its third credit rating downgrade by Moody's.
The ratings agency cited deterioration in Sanral's cash flow stemming from the prolonged delay in the realisation of e-toll revenue.
Sanral's R41bn debt is a slightly higher figure than predicted by Moody's in September, which estimated Sanral's debt stock to total R39bn in 2014.
After e-tolls came into effect in Gauteng earlier this month, Moody's confirmed Sanral's rating with a negative outlook.
Moody's said the negative outlook took into account the operational risks relating to e-toll collection.
- Fin24
