ESKOM HOLDINGS SOC LIMITED - Standard & Poors and Moodys announce actions on Eskoms credit ratings

Standard & Poor’s and Moody’s announce actions on Eskom’s credit ratings

Eskom Holdings SOC Limited
JSE Code: BIESKM


MEDIA STATEMENT



Standard & Poor’s and Moody’s announce actions on Eskom’s credit ratings


Following the announcement of the Standard and Poor’s and Moody’s Ratings decisions
on Eskom’s credit ratings, Anoj Singh, Chief Financial Officer said, “In line with the
execution of our funding plan, 72% of the current fiscal year’s funding amounting to R72
billion will be secured by end April 2017 thus the funding requirement for FY17/18 is not
compromised. We are confident that we will successfully execute Eskom’s funding plan
over the next five years backed by the availability of the government guarantees; the only
challenge that Eskom will have to contend with will be the higher cost of debt.”


Anoj Singh’s comments follow Standard and Poor’s Global Ratings (S&P) announcement
that the rating agency has lowered its long-term corporate credit rating on Eskom to ‘B+’
from ‘BB-’; following the ratings action announced by S&P on Monday, 03 April to
downgrade South Africa’s long-term foreign currency rating credit rating to ‘BB+’.


On Wednesday, 05 April 2017, Moody’s Investor Services also announced their decision
to place Eskom’s Ba1 senior unsecured Medium Term Note (MTN) rating on review for
downgrade; the rating agency has simultaneously placed Eskom’s global scale (GSR)
corporate family rating (CFR) of Ba1 and its national scale rating of A2.za on review for
downgrade. Moody’s review decision on Eskom also follows the rating agency’s decision
to place the Sovereign’s Baa2 bond rating on review for downgrade also on Monday, 03
April 2017.


ENDS




Issued by: Eskom Media Desk
Tel:       +27 11 800 3304/3343/3378
Cell:      +27 82 805 7278
Fax:       086 664 7699
Email:     mediadesk@eskom.co.za

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