Eskom hopes S&P will delay decision

Published Sep 4, 2014

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ESKOM expects Standard & Poor’s (S&P) to await a government plan to address the power utility’s funding shortfall before deciding whether to cut its credit rating to junk. “We are in touch with S&P on a very regular basis,” Eskom finance director Tsholofelo Molefe said yesterday. “They are going to sit as a committee in October to discuss Eskom. We believe we still have around until the end of the month” to come up with an appropriate funding model and avoid a downgrade, she said. Eskom has a R225 billion funding shortfall over the five years to March 2018.

n Sapa reports that Eskom chief Tshediso Matona would assume his duties next month, according to the Public Enterprises Ministry yesterday. He succeeds Brian Dames, who resigned in March and was replaced by Collin Matjila, in an acting capacity. – Bloomberg

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