Eskom: All not lost despite latest downgrade
Power utility Eskom has expressed disappointment at the latest downgrade by credit ratings agency Moody's.
Moody's made its announcement on Wednesday.
It downgraded Eskom’s the long-term corporate family rating (CFR) to B2 from B1.
The zero coupon eurobonds rating has similarly been revised to B2 from B1 in line with the CFR.
Eskom's Khulu Phasiwe says while the downgrade is disappointing, there are some encouraging aspects to it.
"In their report, they make mention that Eskom has made strides in terms of the corruption allegations, corporate governance and also in address Eskom's liquidity position.”
Phasiwe says is due to the power utility appointing a new board and the removal of those implicated in corruption.
"All of those measures have been taken kindly by rating agencies."
Phasiwe says measures taken by the power utility to deal with corruption might lead to a different rating by at the end of the year.
"Because we are dealing with some of their concerns, especially with the corporate development plan for Eskom."
Phasiwe also confirmed that the power utility’s new corporate development plan is set to be finalised by September.
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