The South African National Roads Agency Ltd - SANRAL - Rating downgrade by Moody's Investors Service

SANRAL - Rating downgrade by Moody's Investors Service

South African National Roads Agency SOC Limited
(Incorporated in the Republic of South Africa
Registration number 1998/009584/06)
(“SANRAL” or the “Company”)
Bond Issuer Code: BINRA

RATING DOWNGRADE OF SANRAL BY MOODY’S INVESTORS SERVICE

Notice is hereby given that Moody’s Investors Service (“Moody’s”) has today, 6 September 2013
downgraded SANRAL due to the significant deterioration in the Company’s cash flows which are
necessary to meet its operating expenses and to service its debt levels acquired to, inter alia,
fund the Gauteng Freeway Improvement Project (“GFIP”). The cash-flow strain has arisen from
the prolonged delay in the promulgation of the Transport and Relates Matters Amendment Bill
that would allow the commencement of the collection of toll on GFIP.

The Global scale, local and foreign currency issuer ratings downgraded to Baa3/P-3 from
Baa2/P-3 while the local national scale ratings have been downgraded to A3.za/P-3.za from
A2.za/P-2.za. These ratings have been placed on review for further downgrade.

According to Moody’s, the outlook on the rating remains negative due to the substantial increase
in SANRAL’s debt stock as a result of GFIP and the anticipated further borrowings in the interim.
Any additional debt issuance will further increase SANRAL’s already high finance charges and
will put more pressure on its finances even with the probable realisation of e-toll revenues.

Moody’s review in the next three months will focus on SANRAL’a ability to -
-    manage its current cash challenges; and
-    implement e-tolling and realise revenue.

6 September 2013

Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking division)

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