Fitch Ratings downgraded Eskom’s bonds to its third tier of junk on Wednesday — a few days after Moody’s downgraded the power utility to its fourth tier of junk. Fitch said it viewed Eskom’s standalone credit worthiness — the rating it would give it if it did not have state support — as "extremely speculative" CCC. If not "due to the lack of timely tangible support" from its sole shareholder, the government, Fitch said it would have allowed Eskom to inherit the BB+ with stable outlook it has for South African government bonds. Nevertheless, Fitch and Moody’s remain more optimistic about Eskom than S&P Global Ratings, which cut Eskom down to B- in November, the sixth tier of junk and only one notch above the "substantial risks" band of CCC+. "The new Eskom board is an attempt to start the process of addressing the wider corporate governance concerns of investors," Fitch said in the note accompanying its ratings action. "In seeking a new governance approach, the recently announced boa...
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