Picture: REUTERS
Picture: REUTERS

The Treasury says it is working to accelerate plans to restructure ailing power utility Eskom after ratings agency Fitch opted to keep the sovereign credit rating on hold, with a negative outlook.

“National Treasury, in partnership with the department of public enterprises, is instituting a series of measures to bring discipline to the utility's finances, and to step up the timeline for restructuring,” it said in a statement responding to Fitch's decision.

Fitch warned on Wednesday that failure to form a credible plan to stabilise government debt — exacerbated by bailouts for troubled state-run firms such as Eskom — could prompt a downgrade, and it is regularly cited as one of the key risks to SA's economy.

Reuters