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Clear danger of South Africa’s energy company Eskom defaulting on its debt

S&P Sees ‘Clear Danger’ of Default by South Africa’s Eskom, Bloomberg, By Loni Prinsloo, January 18, 2018, 

• Yields on Eskom’s dollar bonds climb after Reuss’s comments
• Finance Minister Gigaba says Eskom is his ‘biggest worry’
• There is a “clear danger” that South Africa’s state-owned power utility, Eskom Holdings SOC Ltd., could default on its debt, S&P Global Ratings said.
• “We are very concerned about liquidity issues,” Konrad Reuss, the managing director of S&P for sub-Saharan Africa, said at an event in Johannesburg Thursday.
• Eskom is the biggest recipient of state guarantees at a time when domestic power demand is the lowest in more than 10 years and as South Africa’s finances buckle under lower tax revenue and rising debt. The company needs 20 billion rand ($1.6 billion) of funding by the end of its fiscal year on March 31, the Mail & Guardian newspaper reported last week, citing the utility…….. https://www.bloomberg.com/news/articles/2018-01-18/s-p-sees-clear-danger-of-default-by-south-africa-s-eskom

January 19, 2018 - Posted by Christina Macpherson | business and costs, South Africa