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Eskom notes Fitch’s credit rating downgrade - BIESKM
ESKOM HOLDINGS SOC LTD
JSE CODE: BIESKM
DATE: 31 JANUARY 2018
MEDIA STATEMENT
Eskom notes Fitch’s credit rating downgrade
Fitch Ratings has downgraded Eskom’s long-term local currency Issuer Default Rating (IDR)
and unguaranteed local currency senior unsecured ratings to ‘BB-‘ from of ‘BB+’ and
maintained the ratings on Rating Watch Negative (RWN). The rating agency also affirmed the
government-guaranteed local currency senior unsecured debt ratings at ‘BB+’.
In their statement, Fitch cites weakening liquidity of Eskom and the company’s uncertain
capacity to fulfil its short-term financial commitments as the underpinning rationale for their
decision.
Eskom’s Interim Group Chief Executive Phakamani Hadebe said, “We take note of the
decision by Fitch to downgrade Eskom’s credit rating. We firmly believe that the measures
being implemented to turn the company around are yielding the favourable results. We have
seen renewed enthusiasm from financial markets to support Eskom’s funding plan and the
preliminary engagements with market participants have had positive outcomes. We are
cognisant of the challenges that the company is dealing with and we are geared to effectively
resolving these challenges and improve Eskom’s operational and financial sustainability in the
interest of the South African economy.”
Acting Chief Financial Officer Calib Cassim said: “The next few months will be difficult, but we
need to work speedily and with a level of urgency in order to resolve our financial challenge.
We are making progress in expediently resolving Eskom’s financial challenges; we will also
continue engaging the rating agencies and the financial markets to address their concerns and
improve investor sentiment and ultimately restore Eskom’s healthy liquidity position.”
ENDS
Issued by: Eskom Media Desk
Tel: +27 11 800 3304/3343/3378
Fax: 086 664 7699
Email: mediadesk@eskom.co.za
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