Global Ratings agency Moody’s Investors Service has downgraded South Africa’s power utility Eskom following the lowering of the country’s credit rating last week.
The ratings agency says the outlook for the country’s power utility is negative.
Eskom CFO, Anoj Singh: “Downgrade primarily driven by the earlier downgrade of the sovereign credit rating.”
— Khulu Phasiwe (@KhuluPhasiwe) 13 June 2017
Moody’s downgraded the long-term corporate family rating of Eskom and its zero coupon euro bonds to Ba2 from Ba1, leaving it two notches below investment grade.
Eskom’s probability of default rating was also downgraded to Ba2-PD from Ba1-PD.
Eskom says a downgrade by Moody’s was unavoidable.