Transnet risks defaulting on multi-billion rand near-term debt due to its struggle to raise new long-term debt

The original article can be found here.

Article highlights:

  • Transnet vowed to work with the government to guide its future audits as the group risks defaulting on multi-billion rand near-term debt maturities.
  • This comes as Moody’s Investor Services has downgraded Transnet’s ratings status due to its weak liquidity profile and weak corporate governance.
  • Transnet’s baseline credit assessment (BCA), a measure of standalone credit quality prior to any assessment of potential extraordinary government support, was lowered to b1 from ba3 with a negative outlook.