TRANSNET SOC LIMITED - BITRA - Moody's places Transnet's Credit Ratings on Review for Downgrade

BITRA - Moody's places Transnet's Credit Ratings on Review for Downgrade

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 PLACES TRANSNET’S CREDIT RATINGS ON REVIEW FOR DOWNGRADE


Transnet Noteholders are informed that on 08 June 2022, Moody's Investors Service
("Moody's") placed most of Transnet’s credit ratings on review for a downgrade. This includes
the company’s corporate family rating (CFR) of Ba3, the national scale senior unsecured MTN
(Medium-Term Note) programme rating of A2.za and the national scale other short-term rating
of P-1.za. The outlook has been changed from “negative” to “ratings under review”.

Moody’s has also lowered Transnet’s baseline credit assessment (BCA), a measure of
standalone credit quality prior to any assessment of potential extraordinary government
support, to b2 from b1.

Transnet has taken note of Moody’s report, the concerns raised and the resultant rating action.
Transnet is advanced in implementing its funding plan and has been working on various
funding initiatives that will be concluded well in advance of the upcoming maturity of its US1$
bond in July 2022.

The plans to access bond markets are also progressing, with plans to engage both local and
international capital markets. This will mitigate and fundamentally address the liquidity and
refinancing requirements for the next 18 months.

The current operational focus at Transnet is to grow revenue and profitability. The Private
Sector Participation (PSPs) initiatives, intended to expand Transnet’s operations and improve
overall efficiency are well-advanced. In addition, the acquisition of new locomotives is well
progressed, with the procurement event planned for the second quarter (FYQ2) of 2022 which
will improve locomotive availability to move more freight volumes.

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-
places-Transnets-ratings-on-review-for-downgrade%20-%2008Jun22.pdf


Johannesburg

08 June 2022

JSE Debt Sponsor
Absa Corporate and Investment Bank (a division of Absa Bank Limited)

Date: 08-06-2022 05:40:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.