TRANSNET SOC LIMITED - Credit Rating Amendment - BITRA

Credit Rating Amendment - BITRA

Transnet SOC Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1990/000900/30)
Issuer Bond Code: BITRA
(“Transnet”, “the Company” or the “Issuer”)


MOODY’S DOWNGRADES TRANSNET’S CORPORATE FAMILY RATING

Transnet Noteholders are informed that on 03 November 2021, Moody's Investors Service
("Moody's") has downgraded the corporate family rating (CFR) of Transnet to Ba3 from Ba2 and the
national scale senior unsecured Medium-Term Note (MTN) rating to A2.za from Aa2.za.

Transnet's baseline credit assessment (BCA), a measure of standalone credit quality prior to any
assessment of potential extraordinary government support, has been lowered to b1 from ba3 with a
negative outlook.

Transnet notes the concerns raised by Moody’s and confirms the impact of the timing of the
financial results announcement as well as the funding plans on Transnet’s liquidity. The matters
raised by Transnet in the SENS announcement of 29 September 2021 with respect to the difference
in opinion with the Auditor General of South Africa on the accounting treatment of the 1064
locomotives as well as the impact of the legacy of non-compliance and inadequate reporting of
irregular expenditure as required by the Public Finance Management Act (PFMA) have contributed
significantly to the delayed release of Transnet’s financial results.

Transnet continues to work with the relevant stakeholders in government to ensure that the next
audit yields a clearer policy path to guide future audits.

For a detailed analysis of the rating, please refer to the following link:

https://www.transnet.net/Media/Press%20Release%20Office/Rating%20Action%20-%20Moodys-
downgrades-Transnets-CFR-to-Ba3-from-Ba2.pdf


Johannesburg

03 November 2021

JSE Debt Sponsor

Absa Corporate and Investment Bank (a division of Absa Bank Limited)

Date: 04-11-2021 09:45:00
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