S&P downgrades South Africa’s Eskom, says default possible in next six months

PUBLISHED: Wed, 28 Feb 2018 10:17:07 GMT

S&P Global Ratings downgraded the credit rating for South Africa’s state-run power utility Eskom to CCC+ from B- on Wednesday, citing liquidity concerns and insufficient government support that could trigger a default.

A general view of the headquarter of the embattled South African main electricity provider ESKOM is pictured on February 4, 2015 in Johannesburg. South Africa power supply was under “extreme” pressure on February 2, 2015 and likely to remain so until end of the week after a technical fault at the country’s sole nuclear plant, electricity utility Eskom said. AFP PHOTO/GIANLUIGI GUERCIA (Photo credit should read GIANLUIGI GUERCIA/AFP/Getty Images)

“Eskom remains at risk of facing a distressed exchange situation or default in the next six months despite securing 30 billion rand ($2.56 billion) in short-term funding from local and international funders so far this year,” the agency said in a statement.

($1 = 11.7194 rand)

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