Moody’s Investors Service hasn’t said it, but investors already think it: South Africa’s credit is junk.
Browsing: Eskom
Eskom wants the majority of its R440-billion of debt transferred to the South African government.
Eskom urgently needs a plan to turn profitable or South Africa’s state-owned utility will collapse under mounting debt, according to credit agency Moody’s Investors Service.
South Africa’s biggest business lobby criticised the government’s handling of the crisis at power utility Eskom and said it was unrealistic in its approach to the country’s growing debt burden.
Top South African businessmen called upon to help save ailing state-owned companies are abandoning their posts, frustrated by indecision and political interference.
Debt-stricken state power utility Eskom reported a record loss of R20.7-billion on Tuesday, highlighting the severity of the threat it poses to South Africa’s economy.
Eskom, South Africa’s biggest polluter, said emissions of particulate matter that cause chronic respiratory disease are at their highest level in two decades.
The state-owned power utility is set to announce its second consecutive multibillion-rand annual loss on Tuesday. The big question is, how many billions?
Foreigners are ditching South African assets at the fastest pace on record as concern mounts that the government will lose its last investment-grade rating.
Eleven years after construction started on Eskom’s massive 4.8GW Kusile coal-fired power station in Mpumalanga, not one of its six 800MW generator units is currently delivering power into the grid.