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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.
