ESKOM HOLDINGS SOC LIMITED - Moody's downgrades Eskom

Moody's downgrades Eskom

Eskom Holdings SOC Limited
JSE Code: BIESKM
Date: 14 June 2016


MEDIA STATEMENT



Moody’s downgrades Eskom’s ratings to Ba2/Ba3


Based on the Moody’s credit rating methodology for government-related issuers (GRIs);
Eskom’s credit ratings downgrade follows the rating agency’s decision to downgrade the
Sovereign credit rating by one-notch (to Baa3 with a negative outlook) as announced by
Moody’s on 9 June 2017.


Therefore, Moody’s has downgraded the corporate family rating (CFR) of Eskom Holdings
SOC Limited (Eskom) to Ba2 from Ba1. The rating agency also revised the senior zero
coupon Eurobonds (Section 7 debt under the Eskom Conversion Act, 2001) rating to Ba2
from Ba1 in line with the CFR. Simultaneously, Moody’s has downgraded to Ba3/(P) Ba3
respectively the unsecured global medium term notes (GMTN) and GMTN programme of
Eskom.The outlook on all ratings is negative.


“We note the Moody’s rating action as primarily driven by the downgrade of the Sovereign
credit rating. Eskom has secured 53% of this fiscal year’s funding requirement and we
remain resolute that we will fully execute the required funding for the year, al beit under
challenging market conditions. Our liquidity levels remain healthy and Eskom’s financial
profile continues to improve and stabilise. Backed by the availability of the government
guarantees and the stable financial profile; we do not foresee significant impediments in
the execution of the remainder of the FY17/18 funding requirement”, said Anoj Singh,
Eskom’s Chief Financial Officer.


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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