...- We view Eskom Holdings SOC Ltd.'s remaining government support of South African rand (ZAR) 56 billion and ZAR33 billion, for use in fiscal years (FY; ended March 31) 2021 and 2022, respectively, as insufficient to fully cover liquidity needs in the next 12 months, in the absence of additional debt-raising, as the utility struggles with below-cost-inflation tariff increases, a high cost base, and COVID-19-related lost revenue. - We believe that, in addition to full use of the government's support package, Eskom needs to raise up to ZAR44 billion on average in each of the next two fiscal years to refinance high upcoming debt maturities, although higher tariff awards than we expect in our base-case scenario could lead to lower funding needs. - Solid access to external financing, cash-flow supportive tariffs, and favorable cost trends could bolster Eskom's sources of liquidity, but lost cash flow due to the pandemic has delayed a potential improvement in liquidity and leverage, in our view....
