• Inside Labour

    Terry Bell explores the connection between poultry, poverty and desperation.

  • A new ANC sweeper?

    Have the Guptas' new auditors mastered how to look the other way on cue, asks Solly Moeng.

  • Strategy for the big boys

    Formulating strategy across the span of huge companies is a marathon, says Ian Mann.

All data is delayed
Loading...
See More

S&P downgrade worries Eskom

Oct 17 2012 14:56
Sapa

Johannesburg - Eskom is concerned about its one notch downgrading by rating agency Standard & Poor's, the power utility said on Wednesday.

"Although Eskom's credit rating remains investment grade, with the support of government, the recent downgrades by Moody's and Standard & Poor's are a concern.

"An investment grade credit rating is critical to access the cost-effective funding needed to ensure that Eskom and the industry can invest in the electricity infrastructure which South Africa needs," Eskom said.

Credit rating agency Standard & Poor's announced it had downgraded Eskom's credit rating by one notch, as a consequence of its recent decision to downgrade the South African sovereign rating.

Last week, Standard & Poor's lowered the long-term foreign and local currency ratings on South Africa to BBB and A- respectively.

In accordance with its criteria for government-related entities, Standard & Poor's had therefore lowered Eskom's long-term foreign and local currency credit ratings to BBB from BBB+.

It also retained its negative outlook on Eskom, as was the case with the state, due to the unrest in the country's mining sector.

Standard's & Poor's rating followed on the tracks of Moody's, which downgraded the government bond rating by one notch to Baa1 from A3.

National Treasury was also concerned about the country's downgrading and Finance Minister Pravin Gordhan was expected to shed some light on what government would do when he tables his medium-term budget policy statement next week.

 
standard and poor's  |  eskom

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The drop in inflation:

Previous results · Suggest a vote

Loading...