S&P now rates Eskom four notches into junk territory
But Eskom says its plummeting creditworthiness will not hamper its ability to raise funds
07 April 2017 - 07:52
Eskom had its credit rating moved deeper into junk territory by S&P Global Ratings on Thursday night. S&P said it now rated Eskom as B+, four notches below investment grade. This drops the power utility into the "highly speculative" band from "noninvestment grade". The ratings agency said it was prompted to cut Eskom to B+ from BB-because the state-owned enterprise’s (SOE’s) ability to service its enormous debt was heavily dependent on government backing.
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