Eskom received a reprieve from Moody’s, which held its credit rating at Ba1 despite placing the power utility "on review for downgrade" in September. On November 25, S&P Global Ratings downgraded Eskom from BB+ to BB with negative outlook. A reason for S&P’s downgrade, echoed in Moody’s statement on Monday, is Eskom’s R350bn government debt guarantee that is due to expire in March. Moody’s said it was holding its credit rating steady under the assumption the government would renew this guarantee when it expires. In November 2014, Moody’s downgraded Eskom to Ba1 — "junk status" equivalent to a BB+ rating from S&P or Fitch — with stable outlook. In December 2015 it lowered its outlook to negative.
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