Eskom says following the local and foreign currency downgrade of the Sovereign to BBB-, on 13 June 2014, credit rating agency Standard & Poor’s (S&P) has downgraded the long-term local and foreign currency rating of state utility company to BBB- from BBB. The agency has also
placed Eskom on CreditWatch with potential negative implications.

The South Africa’s power utility said the downgrade is in line with the ratings criteria of a state-owned company however the CreditWatch is specific to resolution of Eskom’s capital structure.

“Eskom notes the ratings action by S&P and we are certainly concerned about the CreditWatch which has negative implications. We are confident that a solution will be forthcoming,” said Tsholofelo Molefe, Eskom Finance Director.

“We are currently engaging Government to address Eskom’s capital structure. Eskom remains integral to the South African economy and it continues to rely on a stable financial profile and Government support to execute its infrastructure investment programme”, Ms Molefe
concluded.