“Though it was not unexpected, it still does pain us. When rating agencies perceive any indecisiveness in commitment to the implementation of government policy, this is the result you get,” Sanral spokesperson Vusi Mona said.
Mona said the consequence of the downgrade was that borrowing for the national road agency would likely increase.
“Let’s not forget that Sanral is a state-owned entity. In essence, it is an asset owned by the people of South Africa and government is simply the custodian. Therefore, the downgrade of Sanral ultimately has implications for the people of South Africa.”
Mona added the downgrade would affect Sanral’s risk profile.
“We do raise money from commercial markets in order to supplement our allocation from the national fiscus to enable us to deliver good quality national roads. The national road that gave rise to this downgrade is one of the best in our toll portfolio and was financed through debt which must be repaid,” he said.
He concluded that the downgrade will not hamper Sanral’s continued operations, especially its non-toll portfolio, which constitutes 84 percent of its road network and is financed through an allocation from the fiscus and therefore is not affected by tolling.
