Transnet is running out of cash, Moody’s warns
South Africa’s State-owned transport and logistics company, Transnet, will run out of money for operations and debt-servicing within three months unless it gets a government bailout, according to Moody’s Ratings. The ratings firm has placed Transnet on review for a possible credit downgrade, citing concerns over its “unsustainable” capital structure, deteriorating liquidity position, slow pace of operational improvements and absence of support from the government. “The company requires additional government support to refinance upcoming debt maturities and secure funds for its expanded capex programme,” Moody’s said in a statement. Transnet’s available cash and credit lines “will only be sufficient to reliably cover the company’s operating and investing needs as well as upcoming debt maturities for the next three months,” it said.
South Africa’s State-owned transport and logistics company, Transnet, will run out of money for operations and debt-servicing within three months unless it gets a government bailout, according to Moody’s Ratings. The ratings firm has placed Transnet on review for a possible credit downgrade, citing concerns over its “unsustainable” capital structure, deteriorating liquidity position, slow pace of operational improvements and absence of support from the government. “The company requires additional government support to refinance upcoming debt maturities and secure funds for its expanded capex programme,” Moody’s said in a statement. Transnet’s available cash and credit lines “will only be sufficient to reliably cover the company’s operating and investing needs as well as upcoming debt maturities for the next three months,” it said.
