SA minibus taxis a safe bet – Moody’s

Most of South Africa’s minibus taxi drivers are going about their business unaware that the payments on their new vehicles are now sloshing about in global securitisation channels.

And while their fellow road users may not share high opinions of the armada of taxis that jostle for space and stop without notice and without warning anywhere, anytime, it seems the securitisation people don’t agree.

Their mezzanine Class C notes have just been upgraded three notches by Moody’s which at the weekend also confirmed its rating of the senior Class A notes issued by SA Taxi Securitisation.

Moody’s had taken the notes on review after last year’s national downgrade. But it seems South Africa’s army of taxi driver shrugged it off without so much as a “beep” of their over-used hooters. They’ve continued paying for their vehicles are regularly and reliably as they clog up the fast lane. So far the R131-million liquidity facility covering payment disruptions has not been triggered.