Reverse engineering governance failures that have seeped into an organisation’s DNA over a prolonged period, is proving a difficult task at Transnet.
Furthermore, S&P states that it has seen positive progress under the new leadership, but “governance challenges will take time to remediate”. Previously, S&P had categorised Transnet’s financial risk profile as “significant”. S&P maintains a negative outlook on the logistics parastatal, citing, among others, the heightened financial risk profile and less-than-adequate liquidity buffers.
The problem with this, though, is TFR — as the biggest operating division — generates the bulk of the group’s revenue. In the period under review, TFR made a 45% contribution to revenue — and 51% overall in the 2022 financial year. The consequence of this delicate financial position is that the logistics parastatal has not met its cash interest cover metric for some lenders. Transnet assures that “all the affected lenders have provided the required waivers”.
However, the redemption funds flowed from a patchwork of bridging finance instruments that are short-term in nature.Transnet has not yet indicated whether the company has secured long-term funding to smooth over its maturity profile relative to its liquidity position. The next major maturity falls due in February 2023.
Not misfortunes. Ineptitude,greed, & just plain criminality yes!
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Transnet to issue dollar bond under new $6bn programmeSuccesful issuance of notes will see the proceeds allocated to debt repayment obligations as well as general capital and operational investments I'm just here to show my appreciations to the woman who took me out from zero to hero. Got back R73,000 after investing R9,000. i'm so glad to be among your winning team ma'am and i will always show my gratitude and work with you always Shirley_Austinn
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