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S&P Global Ratings has downgraded the credit rating for Eskom to triple-C-plus from B-minus.
This is in light of citing liquidity concerns and insufficient government support that could trigger Eskom defaulting on its debt.
S&P Global and other ratings agencies see Eskom as a risk to the credit rating of South Africa as a whole, after years of mismanagement and poor governance.
Eskom remains at risk of defaulting in the next six months, despite securing R30-billion in short-term funding from local and international funders so far this year.
S&P Global Ratings outlook for Eskom is negative, especially in light of Eskom being seven notches below investment grade, which is seen as a substantial risk.
