File picture: Independent Media
JOHANNESBURG - Moody's Investor Services has downgraded Eskom’s long-term corporate family rating (CFR) to “B1” from “Ba3”, according to a statement released by the power utility on Friday.

The state-owned entity’s zero coupon eurobonds rating was similarly revised to “B1” from “Ba3” in line with the CFR and the global medium-term note (GMTN) programme. The senior unsecured GMTNs of Eskom have been downgraded to “(P)B2/B2” from “(P)B1/B1”.

All Moody’s ratings remain under review for further downgrades.

The rating agency said it viewed the interventions, including the appointment of the board by Deputy President Cyril Ramaphosa as favourable, Moody’s was concerned about Eskom’s deteriorating liquidity and the ability of the government to provide direct equity support to Eskom.

Eskom’s acting chief financial officer Calib Cassim said: “We remain cautiously enthusiastic that we are geared towards improving the company’s liquidity position and financial profile. We are also acutely aware of the challenges that Eskom is confronted with.”

-BUSINESS REPORT