Eskom 'dissappointed' as Moody's cuts its unsecured debt further into junk

[Jopie Fourie]

Power utility Eskom is disappointed by the further downgrading of its unsecured debt by ratings agency Moody's.

The downgrade follows a decision by Moody's on Friday to leave SA's long-term foreign-currency and local-currency issuer rating at Baa3, the last rung of investment grade.

Moody's did, however, change the outlook for Eskom's credit rating from "stable" to "negative". While Eskom's government-guaranteed debt remained unchanged at Baa3 – in line with SA's sovereign debt - its unsecured debt is another matter.

On Tuesday Moody's announced it had downgraded to B3 from B2 the long-term corporate family rating of Eskom. B3 is the sixth rung of non-investment grade, according to Moody's ratings hierarchy. The struggling power utility's zero coupon eurobonds were also downgraded to B3 from B2.

Eskom, in a statement, said its current board and management had "worked painstakingly hard to try and resolve corporate governance issues of the past regime". It added it was cautiously confident its debt obligations are not at risk.

Eskom 'dissappointed' as Moody's cuts its unsecured debt further into junk | Fin24

Power utility Eskom says it was disappointed by the further downgrading of its unsecured debt by ratings agency Moody's.

www.fin24.com

 

[Jopie Fourie]

The entitlement... JCAM!!!

 

[Ockie]

Oh .... I am sorry. Were you expecting a credit card from them with a $5 Billion limit?

Jeeeeeezuz Eskom .... can you actually just get fcking real for once and return to reality where the rest of us live out our fcking miserable lives thanks to you and your god damn fcking over lords??????????????

 

[OCP]

No words.....

 

[Vrotappel]

Better get used to being junk.

 

[noxibox]

If you haven't dealt with corrupt staff, like those that have side businesses, or cut your unnecessary staff then you're not serious about dealing with your situation.

 

[Sean008]

Exactly that ^^

 

[daveza]

I really don't believe there is a solution for this.

They need to cut tens of thousands of jobs and we know that politics will make sure that doesn't happen.

They refuse to cut off people not paying so will provide services at a huge loss.

To make a dent they would need to increase the cost of electricity by a few 100 % - this would just result in even less people paying.


What else is there that can prevent Eskom destroying the economy ?

 

[Supervan II]

If you haven't dealt with corrupt staff, like those that have side businesses, or cut your unnecessary staff then you're not serious about dealing with your situation.

Especially when that side business you are running has contracts/tenders with the company that employs you!

 

[borro]

Disappointed is the B string not being able to stay in tune, or some burnt toast.

 

[NarrowBandFtw]

Oh .... I am sorry. Were you expecting a credit card from them with a $5 Billion limit?

No they already got one from the ANC guavamint, in fact it has no limit, and their debt rating makes f-all difference. We'll just keep shoveling money down the black hole forever.

 

[Agent_Smith]