International ratings agency Standard & Poor’s (S&P) has affirmed its rating for Transnet’s long-term foreign currency at 'BBB-' and 'BBB+' for local currency, confirming the company’s  resilience and attractiveness as an investment of choice.

The ratings agency said while the macro-economic outlook remains negative, Transnet continues to perform despite a subdued and challenging economic environment.

S&P said it was optimistic that Transnet’s financial credit metrics would remain in line with the ratings agency’s assessment of the company’s stand-alone credit profile at bbb+ even as the company executes its R380 billion rolling 10-year infrastructure investment programme in a challenging economic environment.

The ratings agency said it believes Transnet would continue to execute its infrastructure investment programme in a prudent manner, taking into account market variations.

S&P’s affirmation and acknowledgement of the critical role that Transnet plays in South Africa's economy as a provider of essential infrastructure is testament to the company’s agility and innovation in navigating tough economic conditions.

Encouragingly, the ratings agency said Transnet’s rail, ports and pipeline businesses pose relatively low risk compared with its counterparts in Europe, the Middle-East and North Africa. S&P said the company’s  sharp risk management framework, sound relationships with financial institutions and ability to tap into unused credit facilities will enable the company to meet its commitments.

Transnet has a stand-alone investment grade and raises funds on the strength of its balance sheet and receives no funding or guarantees from the fiscus.

Issued by Transnet