JOHANNESBURG - Eskom will release interim results tomorrow, for the six months ended September 30 last year and the focus is likely to be on the steps that the utility will take to clean up its poor governance mess and avert a liquidity crisis.
Embattled Eskom is currently under the spotlight as ratings agencies and lenders are anxious about its deteriorating finances as well as the government's ability to provide direct equity support to Eskom.
The results will come days after Moody’s Investor Services downgraded Eskom’s long-term corporate family rating (CFR) from Ba3 to B1.
It downgraded the zero coupon eurobonds rating from ‘Ba3’ to ‘B1’ in line with the CFR and the global medium term note (GMTN) programme and the senior unsecured GMTNs of Eskom have been downgraded to ‘(P)B2/B2 from (P)B1/B1’. Moody’s on Friday said Eskom was still under review for further downgrades.
The new Eskom board is expected to reassure ratings agencies and lenders that it is serious about stopping the rot at the power utility. Appointed on January 20, the board has been in contact with Eskom’s lenders amid concerns about several governance lapses at the utility.
- BUSINESS REPORT