Sanral spokesperson Vusi Mona says the downgrade will have ripple effects and ultimately affect the citizens of SA, because the cost of borrowing for Sanral will inevitably increase. The agency's risk profile will also be impacted considerably.
"Let's not forget that Sanral is a state-owned entity. In essence, it is an asset owned by the people of SA and government is simply the custodian. Therefore, the downgrade of Sanral ultimately has implications for the people of SA."
Mona says Sanral is in discussions with its sole shareholder – the state – and is assured of its support. "We are hopeful that this will soon be resolved so that Sanral can go back to what it has been mandated to do ? plan, build, operate and maintain SA's national road network."
He says despite the negative implications of a Moody's downgrade, Sanral's operations will not be hampered – especially its non-toll portfolio (84% of Sanral's road network) that is financed through an allocation from the fiscus and not affected by tolling.
