Eskom says it has noted with disappointment Moody’s decision to downgrade the power utility’s credit rating of its unsecured debt deeper into sub investment grade.
Moody’s cut Eskom’s long-term corporate family rating, or unguaranteed debt, from B2 to B3.
Moody’s has warned that Eskom faces significant challenges that are not easy to solve. These include very high indebtedness, limited revenue growth and non-payment by the municipalities.
In statement, Eskom Acting CEO Jabu Mabuza acknowledged the concerns expressed by Moody’s.
He says Eskom will continue to work closely with shareholder ministries to resolve the current challenges.
The company says it’s cautiously confident that its debt obligations are not at risk.
Eskom’s debt is estimated at over R440 billion.
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