Fitch downgrades Eskom’s ratings
Ratings agency downgrades SA power utility’s long-term local currency issuer default rating and the senior unsecured local currency rating to align to sovereign rating
Fitch Ratings has downgraded Eskom’s long-term local currency issuer default rating (IDR) and the senior unsecured local currency rating to ‘BB+’ from ‘BBB-’. The ratings agency has also affirmed the power utilitys national long-term and short-term ratings at ‘AAA’ and ‘F1+’, respectively. The outlook is stable. In a statement on Tuesday evening, Fitch said that in terms of its rating methodology for ‘Parent and Subsidiary Rating Linkage’ criteria, Eskom’s rating downgrade followed the agency’s decision to downgrade SA’s long-term foreign- and local-currency issuer default ratings to 'BB+' from 'BBB’ announced on Friday. “Given Eskom’s significant link and support from the South African government and the company’s high sensitivity to changes in the sovereign credit profile, Eskom’s downgrade reflects the downgrading of South Africa’s rating,” the statement read. Eskom’s chief financial officer Anoj Singh said: “We note the decision by Fitch to downgrade Eskom’s credit ratings as la...
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