Moody's upgrades Eskom from "substantial risks" to "speculative"

[Jan]

Eskom gets ratings upgrade — with a warning about cheap prices and operational problems

Moody’s Investors Service has upgraded the long-term corporate family rating of Eskom to B2 from Caa1.

Although still non-investment grade, or “junk”, the upgrade means Eskom is now considered speculative rather than having substantial risks.

 

[10:10]

They are trying to get investments going but it is a bit to late for that.

Kendal use to be Eskom's pride and joy and now it is resembling Kriel power station more and more. Duvha is doing a tiny bit better but just by a tiny bit. Arnot is showing its age now. Hendrina well... Why they closed Komati I can't explain but it was actually still a good plant but Hendrina I think we will lose soon.

 

[Ϲhristopher]

They are trying to get investments going but it is a bit to late for that.

Kendal use to be Eskom's pride and joy and now it is resembling Kriel power station more and more. Duvha is doing a tiny bit better but just by a tiny bit. Arnot is showing its age now. Hendrina well... Why they closed Komati I can't explain but it was actually still a good plant but Hendrina I think we will lose soon.

https://cer.org.za/wp-content/uploads/2022/02/Annexure-A1_Summary-Table.pdf

Only Unit 9 at Komati was operational, why keep it open?

 

[Swa]

Low tariffs? Sometimes you wonder what these agencies are smoking.

 

[mypetcow]

Eskom is selling electricity at below cost due to mainly historical reasons. Hence the many bailouts.

We should be paying more like R4-6/kWh for domestic tariffs to be in line with the rest of the world. Their coal, gas or diesel should cost just as much as ours.

The upside is that eventually we’ll actually start insulating our plumbing and homes at these prices

 

[B-1]

Eskom is selling electricity at below cost due to mainly historical reasons. Hence the many bailouts.

We should be paying more like R4-6/kWh for domestic tariffs to be in line with the rest of the world. Their coal, gas or diesel should cost just as much as ours.

The upside is that eventually we’ll actually start insulating our plumbing and homes at these prices

Our coal is cheap low grade and labour is cheaper as well.
But never mind that you can generate your own electricity for less than the current rates so why would anyone pay more?

 

[SubtleBeast]

Upgraded due to government guarantees.
With ESKOM's losses increasing every day, there's no guarantee they won't end up in the exact same situation in the very near future.

 

[RonSwanson]

Yaaay!

Now maybe I can finally offload get rid of my Eskom bonds!

 

[RonSwanson]

Low tariffs? Sometimes you wonder what these agencies are smoking.

Eskom is selling electricity at below cost due to mainly historical reasons. Hence the many bailouts.

We should be paying more like R4-6/kWh for domestic tariffs to be in line with the rest of the world. Their coal, gas or diesel should cost just as much as ours.

The upside is that eventually we’ll actually start insulating our plumbing and homes at these prices

ADR was right, electricity is too cheap.

 

[Botha22]

Our coal is cheap low grade and labour is cheaper as well.
But never mind that you can generate your own electricity for less than the current rates so why would anyone pay more?

Most of the Eskom articles claim Eskom staff are overpaid i.e. labour is not cheap.

 

[B-1]

Most of the Eskom articles claim Eskom staff are overpaid i.e. labour is not cheap.

I'm not accounting for the mismanagement. The labour is cheap compared to the other countries he mentioned.

 

[porchrat]

Low tariffs? Sometimes you wonder what these agencies are smoking.

I mean... the article does explain that they mean low relative to costs of supplying given Eskom's poor performance (having to burn diesel to make up for garbage power stations).

 

[porchrat]

Eskom is selling electricity at below cost due to mainly historical reasons. Hence the many bailouts.

That's a weird way to spell "corruption, mismanagement and ineptitude".

 

[LoadShedder]

That's a weird way to spell "corruption, mismanagement and ineptitude".

No, it's because NERSA keeps limiting the price increases that Eskom keeps asking for.

 

[SubtleBeast]

No, it's because NERSA keeps limiting the price increases that Eskom keeps asking for.

And I thank NERSA everyday for it.

 

[Herr der Verboten]

Eskom gets ratings upgrade — with a warning about cheap prices and operational problems

Moody’s Investors Service has upgraded the long-term corporate family rating of Eskom to B2 from Caa1.

Although still non-investment grade, or “junk”, the upgrade means Eskom is now considered speculative rather than having substantial risks.

And people still think this joke of an entity is a legit organisation.

 

[SubtleBeast]

And people still think this joke of an entity is a legit organisation.

Moody's or ESKOM? 'Cause you could make a case for both.

 

[porchrat]

No, it's because NERSA keeps limiting the price increases that Eskom keeps asking for.

Why does Eskom need those massive consistently above inflation price increases? It did fine before on tarriffs 446% lower... (hint, the answer's in the post you quoted)