Utility Eskom Downgraded To CCC+

[rpm]

Utility Eskom Downgraded To 'CCC+' by S&P Global Ratings On Ongoing Liquidity Concerns And Insufficient Government Support; Outlook Negative

Overview

• Eskom remains at risk of facing a distressed exchange situation or default in the next six months despite securing South African rand (ZAR) 30 billion in short-term funding from local and international funders so far this year.

• We now believe there is a lower likelihood that Eskom would receive extraordinary support from the government, reflecting our view that government support for the utility over the past few months has been insufficient given that the utility's liquidity concerns persist.

• We are therefore downgrading Eskom to 'CCC+' and 'zaB' from 'B-' and 'zaBB-'.

• The negative outlook points to uncertainty regarding the extent and timeliness of government support for Eskom over the coming six months, considering the magnitude of the utility's funding deficit and refinancing risks.

 

[Gordon_R]

Link for above text: https://www.fin24.com/Economy/Eskom/eskom-gets-another-sp-downgrade-following-2018-budget-20180228

 

[Hemi300c]

Viva anc Viva

Now we all going to be in the Brown stuff.

 

[R13...]

Viva anc Viva

Now we all going to be in the Brown stuff.

We are? How? Eskom is broken but all indications are that a clean up is under way.

 

[richjdavies]

...but all indications are that a clean up is under way.

There are certainly a lot of people quitting with full pensions... not sure that means there's a clean-up, just that some of the people caught with their hand in the cookie-jar are running off with the cookies. Why would you think the next lot would be any better.

I think there's a alot more rot to be found before eskom is 'fixed' in any way. And more likely, it can't be 'fixed' and will have to be killed off. It is a horse with a 4 broken legs, no longer fit for purpose and better to just shoot it and start using a car to get around instead!!