LETTER: Renewable energy projects should be rolled out at a scale SA can afford
The credit rating agencies are currently in the country talking to government officials and other formations. Moody’s Investors Service and S&P Global Ratings will publish their rating decisions on November 25 and December 2, respectively. The outcome of these decisions will have an impact on Eskom because the company’s credit rating is linked to that of the sovereign. Officials from Moody’s last visited SA and presented their credit opinion of Eskom on September 20 2016. They placed Eskom under negative watch and expanded on the factors that would result in a downgrade. These factors are the failure of the company to stabilise its financial and liquidity profiles, a change in the government’s support for the company or a downgrade in the sovereign rating. Moody’s labelled Eskom’s financial ratios as being distinctly weak, attributing this to Eskom’s rising operating costs driven by increases in primary energy costs, ongoing growth of independent power producer (IPP) costs and the r...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.