JOHANNESBURG (Reuters) – South Africa’s state power utility Eskom urgently needs a turnaround plan as its capital structure is unsustainable, credit ratings agency Moody’s said on Tuesday in a report which sent the rand lower.
“The company’s operational and financial performance has deteriorated, indicating the extent of the challenges facing Eskom in meeting its debt obligations absent government support,” Moody’s said in a note.
Eskom reported a mammoth 20.7 billion rand ($1.39 billion) annual loss a week ago. [nL8N24V5CB]
($1 = 14.9196 rand)