TRANSNET SOC LIMITED - CANCELLATION OF S469272 Credit Rating Announcement - BIEM

CANCELLATION OF S469272 Credit Rating Announcement - BIEM

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”)


S&P GLOBAL RATINGS AFFIRMS THE CREDIT RATINGS OF TRANSNET


Noteholders are informed that S&P Global Ratings (“S&P”) has, on 29 November 2022,
affirmed Transnet’s issuer ratings at BB- and the outlook remains negative. The BB- issuer
ratings on its senior unsecured debt and the National Scale Rating (NSR) at za.AA/za.A-1+
have also been affirmed. However, Transnet’s stand-alone rating was revised down by one
notch to b+ from bb-.

The operational challenges in the Freight Rail business - largely driven by the non-availability
of locomotives, theft and vandalism, and compounded by the impact of floods in KwaZulu-
Natal in April this year and the two-week industrial action in October, are amongst the major
contributors to the revised stand-alone rating as they impact operational performance.

Transnet continues to implement solutions in this regard including the recent agreement with
Original Equipment Manufacturer CRRC E-Loco. The R5.8 billion support announced during
the Medium-Term Budget Policy Statement on 26 October 2022 will also contribute positively
to the funding requirements to increase locomotive availability.

This week Government announced measures to address the theft of public infrastructure for
resale as scrap metal, including a six-month ban on the export of scrap copper and ferrous
metal. These interventions are expected to curb the rampant cable theft experienced by
Transnet, and contribute to a more stable operating environment.

For a detailed analysis of the rating, please refer to the following link:
https://www.transnet.net/InvestorRelations/Pages/SENS-Announcements.aspx


Johannesburg

01 December 2022

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

Date: 02-12-2022 07:15:59
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