[miningmx.com] – ESKOM said it was disappointed with the credit downgrade applied by Moodys’ Investors Service saying it had made “great progress” in respect of resolving its financial challenges.
“Eskom has with the support of the shareholder ministries developed measures to resolve the financial challenges and has made great progress,” said Eskom finance director, Tsholofelo Molefe.
“We are therefore deeply disappointed with Moody’s rating action. We will continue to work towards restoring Eskom’s financial sustainability through the identified measures that we will be implementing,” she said.
Said Tshediso Matona, Eskom’s CEO: “We take note of Moody’s analysis of the challenges facing Eskom and in the interests of the economy we will continue to focus on security of supply without compromising Eskom’s return to financial sustainability.’
The South African government is thought to be selling non-core investments, such as its shares in telecommunications company, MTN, in order to help plug a deficit in its project funding of at least R50bn.
Moody’s downgraded Eskom’s senior unsecured rating has been lowered to Ba1 from Baa3 after earlier revising the South African Sovereign debt rating on November 6. Its outlook on the Eskom rating was changed to stable from negative.
