...- We view the budgeted government support of South African rand (ZAR) ZAR21 billion for Eskom Holdings SOC Ltd. for fiscal year ending March 31, 2023 (FY23), as insufficient to cover Eskom's liquidity needs in the next 12 months without Eskom incurring additional debt, since the utility is struggling with power supply and cost pressures amid an uncertain tariff outlook. - We estimate that Eskom would need to raise up to ZAR30 billion in FY23 and ZAR21 billion in FY24 to refinance upcoming debt maturities, assuming that it receives the tariff awards set out in its corporate plan; Eskom's most recent tariff application, which is higher than the corporate plan, is being contested by the regulator. - Solid access to external financing, cash-flow supportive tariffs, and favorable cost trends could bolster Eskom's sources of liquidity, but non-payment by certain municipalities, continued tariff uncertainty, and rising costs, including independent power producers' (IPP) generation costs, constrain...
