Moody’s wants details of Eskom rescue plan
The ratings agency also warns of trends indicative of the deterioration of public finances
SA’s investment rating remains in the balance following a statement from ratings agency Moody’s on Thursday in which it called for more detail on Eskom and warned of trends indicative of the deterioration of public finances. Moody’s did, however, leave the door open for SA to escape a negative rating decision on March 29, by intimating that the public release of a credible and detailed plan on Eskom could cast a different light on SA’s fiscal position. "Unless and until a clear adjustment path is detailed Eskom will remain the source of contingent liability risks, weighing on SA’s fiscal strength." The detail of the plan was noticeably absent from budget documentation tabled in parliament on Wednesday. The government announced that it would support Eskom with R23bn a year for three years, rising to R150bn over a decade to shore up its balance sheet. This will be extended beyond the budget period for the next 10 years. But the detail of how the company will be split into three and ho...
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