Ratings agency S&P has placed Transnet on credit watch due to concerns over its financial outlook. Despite Transnet’s ‘BB-‘ issuer credit rating and ‘zaAA-/zaA-1+’ national scale ratings, S&P cited slow operational improvements and insufficient cash flow to sustain liquidity, leverage and capital expenditure needs. Additionally, S&P stated that high debt servicing costs further strain the company’s financial stability. Transnet’s operational improvements are projected to be gradual, with limited capacity to offset its financial challenges. In response, Transnet CEO Michelle Phillips reaffirmed its recently announced recovery plan as a strategy to enhance financial and operational performance.
