Research Update: South African Power Utility ESKOM Holdings SOC Downgraded To 'BB+' Following Management Suspensions; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: South African Power Utility ESKOM Holdings SOC Downgraded To 'BB+' Following Management Suspensions; Outlook Negative

Research Update: South African Power Utility ESKOM Holdings SOC Downgraded To 'BB+' Following Management Suspensions; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: South African Power Utility ESKOM Holdings SOC Downgraded To 'BB+' Following Management Suspensions; Outlook Negative
Published Mar 19, 2015
Published Mar 19, 2015
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

The recent announcement of ESKOM Holdings SOC Ltd.'s board regarding the suspension of the company's CEO and three senior executives has led us to have less confidence in the company's corporate governance arrangements as well as in its stand-alone credit profile (SACP). We continue to assume there is an extremely high likelihood that ESKOM would receive extraordinary state support if needed, which currently leads us to add six notches of uplift to our assessment of the company's SACP. Consequently, we are lowering our long-term ratings on ESKOM to 'BB+' from 'BBB-' and national scale ratings to 'zaA/zaA-2' from 'zaAA-/zaA-1'. The negative outlook reflects our opinion that material execution risk remains associated with the government's support plan, and that ESKOM's operating

  
Report Type:

Research Update

Ticker
1001Z@SJ
Issuer
ESKOM Holdings SOC Ltd.
GICS
Electric Utilities (55101010)
Sector
Global Issuers
Country
South Africa
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: South African Power Utility ESKOM Holdings SOC Downgraded To 'BB+' Following Management Suspensions; Outlook Negative" Mar 19, 2015. Alacra Store. May 05, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-South-African-Power-Utility-ESKOM-Holdings-SOC-Downgraded-To-BB-Following-Management-Suspensions-Outlook-Negative-1389889>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: South African Power Utility ESKOM Holdings SOC Downgraded To 'BB+' Following Management Suspensions; Outlook Negative Mar 19, 2015. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-South-African-Power-Utility-ESKOM-Holdings-SOC-Downgraded-To-BB-Following-Management-Suspensions-Outlook-Negative-1389889>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.