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.
“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)
Reporting by Ed Stoddard; Editing by Kim Coghill
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.