S&P: Transnet view to negative

Standard & Poor’s said it revised the outlook on Transnet SOC Ltd. to negative from stable.

The agency also said it affirmed the long-term foreign- and local-currency corporate credit ratings at BBB- and BBB+, respectively, along with the zaAA+ and zaA-1 long- and short-term term South Africa national scale ratings.

The outlook revision follows similar actions on the Republic of South Africa, S&P said.

The ratings reflect the company’s BBB+ stand-alone credit profile and an opinion that there is an extremely high likelihood that the South African government would provide timely and sufficient extraordinary support to Transnet in the event of financial distress, the agency said.

The ratings also consider the company’s critical role in South Africa, owing to its position as the monopoly infrastructure provider in freight rail, port ownership and pipelines, S&P said.

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