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MOODY’S DOWNGRADE SOUTH AFRICA’S ESKOM
Eskom recently downgraded by rating agency Moody’s.
Eskom’s long term collective family rating has downgraded by the Global ratings agency Moody’s. The downgrade was from B1 to Ba3 with warning that the ratings remains under review.
The rating agency pegged the downgrade to Eskom’s falling liquidity and the the ability of the government to provide balanced support to the difficulties faced by electricity parastatal.
In an attempt to resolving the ongoing downgrade, a new Deputy President Ramaphosa was appointed by the board members. The decision was taken in a view to enhance the quality of Eskom.
Eskom said, “We note the decision by Moody’s to downgrade the company’s rating; however we remain resolute in our endeavors to progressively turn this company around. The liquidity concerns raised by Moody’s are starting to dissipate as we are already seeing investors and lenders revive their engagements and commitment to Eskom. We see this action by Moody’s as a low point in the credit profile of Eskom and we are confident that we are on a path to recovery; supported by the new Board‚ the governance and leadership at Eskom are being stabilized to bolster the turnaround of the company.”