SANRAL's credit rating downgraded
Noteholders are advised that Moody’s Investor Services (“Moody’s”) has, on 29 June 2018, downgraded the credit ratings of SANRAL.
Moody’s downgraded SANRAL’s long-term local and foreign currency global scale ratings to Ba2 from Ba1; with the outlook accorded as negative and affirmed the short term global scale of Not Prime (NP). Moody’s also downgraded the long-term national scale rating to A1.za from Aa3.za and affirmed the short term national scale rating of P-1.za; with the outlook accorded as negative.
The rating reflects SANRAL’s ongoing liquidity pressure which is amplified by the national government’s decision to further delay its announcement on the long-term solution to SANRAL’s Gauteng Freeway Improvement Project (GFIP) funding model. SANRAL's rating could be stabilised if the national government is able to resolve the GFIP long-term funding model in such a way that SANRAL will be able to honour all its financial commitments.