Fitch affirms Transnet

Fitch Ratings said it affirmed Transnet Ltd.'s long-term local- and foreign-currency issuer default ratings at BBB+ and BBB-, respectively, along with its short-term local-currency issuer default rating at F2 and short-term foreign-currency issuer default rating at F3.

The stable outlook is linked to South Africa's sovereign outlook.

The ratings reflect the strong operational, legal and strategic linkages between the utility and that of its 100% shareholder, the South African government, Fitch said.

The utility is rated on a top-down basis from its shareholder. As such, any change in the level of state support or change in South Africa's sovereign ratings is likely to affect Transnet's ratings, the agency said.

Fitch also said it expects that Transnet's standalone credit profile will continue to weaken over the medium term as a result of its significant rolling five-year capital investment program.

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