Moody’s likely to downgrade SA if govt takes on Eskom debt - PwC

ambroseg1

Honorary Master
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Jul 15, 2008
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10,125
Moody's doesn't have the balls, been crying wolf for over a year now.

EVERY time we're up for review they find an excuse to back down. "waiting for the mid-term budget", "waiting for the real budget", "waiting to see what direction the new president gives", "waiting for the election", "SOE this", "SOE that".

Time to **** or get off the pot Moody's.
This ^. For some reason it seems they are stalling in perpetuity.
 

NarrowBandFtw

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Feb 1, 2008
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Indeed all very curious and suggests there is some dodgy stuff going on in the background.
I don't have proof but also have strong suspicions along these lines:
I have absolutely no doubt that Moody's are being bribed to give favorable outcomes in their decisions
All three of the top ratings agencies have been caught cooking the numbers for financial gain before after all, that's one of the main reasons the sub-prime bubble got inflated to breaking point.
 

Lew Skannen

Expert Member
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Jun 20, 2012
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2,903
I don't have proof but also have strong suspicions along these lines:


All three of the top ratings agencies have been caught cooking the numbers for financial gain before after all, that's one of the main reasons the sub-prime bubble got inflated to breaking point.
Precisely. But, in the case of South Africa, the other two probably realized it was not worth their while to get involved in some scandal, again. Amazing to see how Moody's still seem to find a reason to keep SA at investment grade while so many investors keep losing money they invested locally.

They obviously have the 'balls' and do not care about actions.
 

Pitbull

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Apr 8, 2006
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61,839
You making the false assumption that people will actually pay their power bills and won't destroy the infrastructure if they are cutoff for not paying
Even if they do. The infrastructure is not an expense for the new companies as it's already there. Maintenance will be their problem. People cut the lines of burn substations, fark them. They don't pay, fark them. That is the reason Government don't want to privatize it. They want to keep their voters from being cut paying or non-paying.

1/2 of the municipalities owe billions as it stands. Eskom can't cut them due to Government...
 

NarrowBandFtw

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Feb 1, 2008
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Damn, if I get paid for adding to the grid, it might even make going off the grid an easier choice.
move to Cape Town, if the city is your power supplier you can indeed get paid for adding to the grid

well, sort of, they'll discount your usage with your supply, not sure if they'll actually let you turn a profit
 

Pitbull

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Apr 8, 2006
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61,839
move to Cape Town, if the city is your power supplier you can indeed get paid for adding to the grid

well, sort of, they'll discount your usage with your supply, not sure if they'll actually let you turn a profit
I don't need a profit. I just want to be compensated for the maintenance required to uphold my supply. If that means I don't have to rely on them for a supply and get money back to cover the maintenance and I get it little bit cheaper than from Eskom, it will be a no brainer...
 

Tander

Executive Member
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Jun 8, 2008
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5,136
I don't see Moody ever downgrading us. Eskom will get a bailout of some kind; there is no alternative to that situation.
 

NarrowBandFtw

Honorary Master
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Feb 1, 2008
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16,010
It will take a decade or more to recover from a 3 for 3 junk status
It will take even longer to recover from an ANC that can keep borrowing money to fund their corruption and socialist programs.

Bring on the triple junk!
 
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