Transport Dept to work closely with Transnet to improve its operations, financial stability
This follows a recent credit downgrade by Standard & Poor's, which cited high debt levels, negative cash flow, and Transnet's growing reliance on government support.
In response, the department has committed to a total of R94.8 billion in additional financial support to help manage the impact of the downgrade on Transnet's existing debt.
'Government has approved an additional R48.6 billion guarantee for Transnet to ensure that all debt redemptions will be covered over the next five years and that the entity also maintains sufficient liquidity levels,' said department spokesperson Collen Msibi.
'Government has also considered the impact of the credit downgrades on Transnet's existing debt and has therefore also approved R46.2 billion for it to mitigate the risk of such ratings.'
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