ESKOM HOLDINGS SOC LIMITED - Moodys downgrades Eskoms unguaranteed credit ratings

Moody’s downgrades Eskom’s unguaranteed credit ratings

Eskom Holdings SOC Limited
(Registration No. 2002/015527/06)
JSE alpha code: BIESKM
(“Eskom” or the “company”)

Moody’s downgrades Eskom’s unguaranteed credit ratings

Moody’s Investor Services (Moody’s) has downgraded to ‘B3’ from ‘B2’ the long-term
corporate family rating (CFR) of Eskom; the zero coupon eurobonds rating has similarly
been revised to ‘B3’ from ‘B2’ in line with the CFR and the global medium term note (GMTN)
programme and the senior unsecured GMTNs of Eskom were downgraded to
‘(P)Caa1/Caa1 from (P)B3/B3. Outlook remains negative.
Moody’s has simultaneously affirmed the Baa3 rating on Eskom’s government guaranteed
notes.

Eskom notes with disappointment the ratings decisions implemented by Moody’s. The
current Board and management have worked painstakingly hard to try and resolve corporate
governance issues of the past regime. Eskom also continues to implement the Generation
recovery 9-point plan to stabilise the plant and the security of supply; while the system has
been constrained, we have endeavoured to provide a secure and stable electricity supply.
The company’s liquidity levels remain at low levels, we have, however; seen a considerable
amount of support for Eskom paper from the local markets and coupled with the financial
support announced by government, we are cautiously confident that our debt obligations are
not at risk.

Eskom’s Acting Group Chief Executive and Interim Executive Chairman, Jabu Mabuza said,
“we acknowledge the concerns expressed by Moody’s and continue to work closely with
shareholder ministries to resolve the current challenges. Whichever option gets implemented
through the unbundling processes, we will ensure that our creditors will not be compromised
and that the execution of these options gets done under acceptable legal frameworks. Our
electricity supply system remains fairly constrained; but we are doing everything we can to
make sure that the supply is not compromised.”

6 November 2019

Debt Sponsor

Nedbank Corporate and Investment Banking

Date: 06/11/2019 09:20:00
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