Research Update: South African Utility ESKOM Downgraded To 'B-' On Weaker Liquidity And Reduced Likelihood Of Support; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: South African Utility ESKOM Downgraded To 'B-' On Weaker Liquidity And Reduced Likelihood Of Support; Outlook Negative

Research Update: South African Utility ESKOM Downgraded To 'B-' On Weaker Liquidity And Reduced Likelihood Of Support; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: South African Utility ESKOM Downgraded To 'B-' On Weaker Liquidity And Reduced Likelihood Of Support; Outlook Negative
Published Nov 28, 2017
8 pages (2968 words) — Published Nov 28, 2017
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On Nov. 24, 2017, we lowered our ratings on South Africa and therefore believe the likelihood of ESKOM receiving timely and sufficient support from the government, its owner, has reduced to very high from extremely high. In addition, ESKOM's stand-alone credit profile has weakened following a drop in cash as of Oct. 31 and lack of local bank and investor support. This raises concerns about the size of the company's funding deficit, which could lead to a default over the next six months without direct government support. As a result, we are lowering our ratings on ESKOM to 'B-' and 'zaBB-/zaB' from 'B+' and 'zaBBB/zaA-2'. The negative outlook reflects uncertainty regarding the government's commitment and ability to provide timely support

  
Brief Excerpt:

...On Nov. 24, 2017, we lowered our ratings on South Africa and therefore believe the likelihood of ESKOM receiving timely and sufficient support from the government, its owner, has reduced to very high from extremely high....

  
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:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: South African Utility ESKOM Downgraded To 'B-' On Weaker Liquidity And Reduced Likelihood Of Support; Outlook Negative" Nov 28, 2017. Alacra Store. May 05, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-South-African-Utility-ESKOM-Downgraded-To-B-On-Weaker-Liquidity-And-Reduced-Likelihood-Of-Support-Outlook-Negative-1956573>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: South African Utility ESKOM Downgraded To 'B-' On Weaker Liquidity And Reduced Likelihood Of Support; Outlook Negative Nov 28, 2017. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-South-African-Utility-ESKOM-Downgraded-To-B-On-Weaker-Liquidity-And-Reduced-Likelihood-Of-Support-Outlook-Negative-1956573>
  
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