JOHANNESBURG - State-owned aerospace and military technology company Denel said on Wednesday the issues raised by Fitch in downgrading its credit rating would be resolved through the implementation of a recently approved strategy that includes getting rid of non-core assets.
Fitch on Monday cut Denel's national long-term rating to 'B(zaf)' from 'AA-(zaf)' and national short-term rating to 'B(zaf)' from 'F1+(zaf)' and placed it on negative watch, citing weaker government support.
On Wednesday, Denel's new group CEO Danie du Toit said the government was cognisant of the fact that the company was in need of additional liquidity to rebuild its business.
In the 2019 budget review last month, finance minister Tito Mboweni announced a contingency reserve of R13 billion for 2019/20. Denel said it was preparing to submit a funding application.
"The board has taken far-reaching steps to restore good corporate governance. We have a new experienced management team, with a number of executive positions currently being filled as we speak," Du Toit said.