BINRA - South African National Roads Agency SOC Limited (SANRAL) - Rating
JSE
BINRA
BINRA - South African National Roads Agency SOC Limited ("SANRAL") - Rating
downgrade of SANRAL by Moody`s Investors Service ("Moody`s")
South African National Roads Agency SOC Limited ("SANRAL")
(Incorporated in the Republic of South Africa
Registration number 1998/009584/06)
Bond Issuer Code: BINRA
Rating downgrade of SANRAL by Moody`s Investors Service ("Moody`s")
Notice is hereby given that Moody`s has today (4 May 2012) downgraded
SANRAL due to the North Gauteng High Court`s decision on 28 April 2012 to
block the implementation of the electronic tolling (e-toll) on the country`s
largest toll road, through the Gauteng Freeway Improvement Project (GFIP),
pending a final court resolution on this matter. This interdict supersedes
the South African government`s 26 April 2012 decision to postpone e-toll
collections by one month and adds uncertainty on the future of the toll
road project, according to Moody`s.
Moody`s view is that the delay in GFIP e-toll collection adds pressure on
SANRAL`s finances and raises concerns over its medium-term financial
sustainability.
Ratings affected by today`s action.
The Global scale, local and foreign currency issuer ratings downgraded
to Baa2/P-3 from Baa1/P-2 while the local national scale ratings have
been downgraded to A2.za/P-2.za from Aa3.za/P-1.za.
According to Moody`s, the outlook on the rating remains negative due to
SANRAL`s weakening financial conditions associated with the e-tolling system
as well as concerns over South Africa`s deteriorating operating environment,
as reflected by the negative outlook on South Africa`s A3 government bond
ratings.
4 May 2012
Debt sponsor
Absa Capital
(the investment banking division of Absa Bank Limited, affiliated
with Barclays)
Date: 04/05/2012 17:22:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
