S&P lifts some Transnet notes to BBB+

S&P said it affirmed the BBB- long-term foreign-currency and BBB+ long-term local-currency corporate credit ratings on Transnet SOC Ltd.

S&P also said it affirmed the company’s zaAAA long-term and zaA-1 short-term South Africa national scale ratings.

The outlooks are negative.

The agency also affirmed the BBB- and BBB+ issue ratings on Transnet's senior unsecured debt.

S&P also raised the issue rating on the 5 billion in South African rand 9˝% senior unsecured medium-notes due in 2021 to BBB+ from BBB-.

The company continues to perform in line with forecasts in the challenging domestic economic environment, the agency said.

Transnet's financial credit metrics also are expected to remain commensurate with its stand-alone credit profile of BBB+ despite the company's significant capital expenditure program and uncertainties regarding some of its regulated business lines, S&P said.

Transnet continues to play a critical role in South Africa's economy as a provider of essential infrastructure services and maintains a very strong link with the government, the agency added.

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