South Africa AG Sees Uncertainty About Transnet as Going Concern

Auditor-General sees “several indicators of material uncertainty” regarding Transnet’s ability to continue as a going concern, according to company’s financial statements.

• Indicators include loss of 1.9 billion rand, net current liability position of 65.2 billion rand, covenant breaches on cash interest cover
• Other indicators include breaches following credit-rating downgrades by S&P Global Ratings and Moody’s Ratings, continuing operational challenges
• Post year-end, government guarantees of 145.8 billion rand were received, though increased borrowings, litigation exposure and legislative uncertainty around Transnet National Port Authority corporatization persist
• “Despite the recovery plan, several targets remain unmet”
• NOTE: Earlier, Transnet South Africa Full-Year Loss Shrinks ...