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JOHANNESBURG - Fitch Ratings has placed Eskom’s long-term local currency issuer default rating (IDR) and unguaranteed local currency senior unsecured ratings of “BB+” on rating watch negative (RWN). 

The ratings agency has affirmed the government-guaranteed rand senior unsecured debt ratings at “BB+” and also placed the national long-term rating of “AAA” and the national short-term rating of “F1+” on RWN. 

Eskom’s acting chief financial officer, Calib Cassim, commented: “We note the decision by Fitch to place Eskom’s IDR on RWN, and this reflects the need for the ratings agency to assess Eskom’s links to the government, given weakening liquidity and funding access. 

Eskom is confident that the liquidity challenges it faces will be resolved.” Interim group chief executive Sean Maritz said: “We remain focused on improving corporate governance in order to address liquidity challenges in the near term.” 

- BUSINESS REPORT