Transnet suffers downgrade

Transnet’s corporate family rating (CFR) has been dropped from to Ba3 from Ba2, by a rating agency with a negative outlook.

The South Africa-based logistics company has been pulled down on weak liquidity profile.

Transnet’s outlook reflects the rating agency’s expectation that liquidity pressure will continue to intensify unless Transnet raises a substantial amount of new long-term financing in the coming month.

This comes after the rating agency pulled down Transnet’s rating in 2020, following the downgrade of the sovereign’s long-term foreign currency ratings to BB- from BB.

See issuer profile here