Moody’s says new financial support for Eskom is credit negative
Moody’s says the government will struggle to absorb the costs of R59bn in extra support for Eskom over the next two years, while no clear turnaround plan has emerged
25 July 2019 - 11:32
Ratings agency Moody's Investors Service said on Thursday that the SA government will struggle to absorb the costs of R59bn in support for Eskom over the next two years. The ratings agency says recently announced funding for the embattled power utility is “credit negative”.
The government will struggle to absorb the costs of support for Eskom and other state-owned enterprises, Moody's said in a statement, adding that because no clear turnaround strategy for Eskom had been forthcoming, there was risk of it needing even more financial support...
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