Moody’s downgrades Eskom again

(Madelene Cronje/M&G)

(Madelene Cronje/M&G)

Despite sweeping changes at Eskom, ratings agency Moody’s has downgraded the utility’s credit.

“There is limited visibility at this juncture as to Eskom’s plans for placing its longer term business and financial position on a sustainable footing,” said Moody’s in a statement.

On Wednesday night, Moody’s downgraded Eskom from B1 to B2.

Moody’s took into consideration that the parastatal’s board was replaced in January, and it had sufficient short term funding to address its liquidity crisis, reducing the threat of a default. But, the ratings agency believed that the conditions at Eskom “remained challenging”.

Eskom chief executive Phakamani Hadebe has expressed disappointment in Moody’s decision at the stage, but “the future looks promising.”  

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