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BIESKM - Eskom Holdings Soc Limited - Eskom notes Moody`s comments
MEDIA STATEMENT
Eskom notes Moody`s comments
Monday, 19 March 2012: Eskom has taken note of the comments by rating agency
Moody`s which follow the decision by the National Energy Regulator of South
Africa (Nersa) recently to grant Eskom`s request for a 16% average increase
in the electricity tariff for 2012/2013, as opposed to the 25.9% which Nersa
originally granted in February 2010.
In its Weekly Credit Watch this morning (19 March 2012), Moody`s described
the news as "credit negative for Eskom". It should be noted that the ratings
agency`s update does not constitute a formal credit opinion on Eskom, and
will thus not affect Eskom`s rating.
It does, however, highlight the need for electricity prices to continue
moving up towards cost-reflective levels. "Our financial position is much
improved. But we need certainty on a longer term price path for electricity
which will ensure that Eskom, and the electricity industry, are financially
viable and sustainable"" said Eskom Chief Executive Brian Dames.
Dames and Eskom Finance Director Paul O`Flaherty visited credit rating
agencies in London last week, accompanying the Deputy Minister of Public
Enterprises Benedict Martens and officials from the Department of Public
Enterprises and National Treasury, to explain the 9 March 2012 reduction in
the tariff increase.
ENDS
Date: 19/03/2012 14:30:59 Produced by the JSE SENS Department.
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