S&P downgrades power utility Eskom rating

S&P believes there is a lower likelihood that Eskom will receive extraordinary support from the government.

S&P Global said it was cutting its rating on Eskom to ‘CCC+’  and ‘zaB’ from ‘B-‘ and ‘aBB-‘, saying the power utility remained at risk of a distressed exchange situation or default in the next six months.

“We now believe there is a lower likelihood that Eskom would receive extraordinary support from the government, reflecting our view that government support for the utility over the past few months has been insufficient given that the utility’s liquidity concerns persist,” S&P said.

– African News Agency (ANA)

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