Moody's places Transnet's credit rating on review for possible downgrade

JOHANNESBURG - Moody's has placed Transnet's credit rating on review for a possible downgrade.
This because of the state owned entity's worsening financial stability.

Moody's says it is concerned because the available liquidity and undrawn credit have reduced substantially since April.

Liquidity facilities have reduced to  R4.1 billion.

Transnet is sitting with debt maturities of about R10-billion, including a R4.6 billion short-term bond, which was extended by the Public Investment Corporation.

That repayment is due in March next year.

Transnet's weakened liquidity is a governance-related risk, according to Moody's.

And it has been made worse by the exit of the CEO and CFO in October.

The entity remains without a permanent top management team.

Moody's highlights that it will be near impossible for Transnet to recover without government support.