TRANSNET SOC LIMITED - Credit Rating Announcement - BIEM

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.

Transnet continues to implement solutions to resolve the operational challenges, including the
signing of the definitive settlement 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.

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


Johannesburg

02 December 2022

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

Date: 02-12-2022 07:16:00
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