- Jun 20, 2012
https://www.fin24.com/Budget/budget2019-moodys-likely-to-downgrade-sa-if-govt-takes-on-eskom-debt-pwc-20190214Moody’s Investor Services is likely to downgrade South Africa’s sovereign credit rating to below investment grade in 2019 “unless something significant happens”, with tax collection below projections and a possible Eskom bailout on the cards, according to PricewaterhouseCoopers.
The audit and advisory firm told a media briefing on Wednesday that revenue collection in November and December 2018 “became significantly worse” and “chances are quite high” that Moody’s will cut SA’s rating to junk.
Finance Minister Tito Mboweni is expected to detail government’s support for Eskom in his budget speech next Wednesday.
The Department of Public Enterprises, meanwhile, told Parliament on Wednesday that the debt-laden power utility was is “technically insolvent” and will not last beyond April in its current state.