Moody’s and Standard & Poor’s announce rating actions on Eskom Eskom Holdings SOC Limited JSE Code: BIESKM Date: 29 November 2017 MEDIA STATEMENT Moody’s and Standard & Poor’s announce rating actions on Eskom Wednesday, 29 November 2017: Moody’s Investor Services (Moody’s) has downgraded to ‘Ba3’ from ‘Ba2’ the long-term corporate family rating (CFR) of Eskom; the zero coupon eurobonds rating has similarly been revised to ‘Ba3 from ‘Ba2’ in line with the CFR and the global medium term note (GMTN) programme and the senior unsecured GMTNs of Eskom has been downgraded to ‘(P)B1/B1’ from ‘(P)Ba3/Ba3’. All Moody’s ratings remain under review for further downgrades. Standard and Poor’s Global Ratings (S&P) also announced on Tuesday, 28 November that they have lowered Eskom’s long-term foreign and local currency corporate credit rating to ‘B-’ from ‘B+’; the outlook is negative. S&P has simultaneously revised Eskom stand-alone credit profile (SACP) to ‘ccc-' from ‘ccc+’ While the rating actions by both rating agencies are largely driven by the downgrade of the sovereign credit rating; the rating agencies also cite Eskom’s deteriorating liquidity levels and continued constraint access to funding as some of the drivers for the actions. S&P and Moody’s have also highlighted their assessment of the assumed likelihood of timeous government support for Eskom from ‘extremely high’ to ‘very high’ and from ‘high to strong’, respectively. Commenting on the rating actions, Calib Cassim, Eskom’s Acting Chief Financial Officer said, “we are committed to ensuring an improvement of our liquidity levels and restoring the positive lender and investor sentiment to unlock access to the markets. We remain positive that with the cooperation of the relevant participants, the funding plan can still be executed albeit under challenging conditions; this will strengthen our liquidity and propel us towards positive cash flows”. “Eskom continues to engage with the relevant key stakeholders to ensure that current governance related issues are expeditiously resolved. We are also of the view that government’s willingness and ability to provide timeous support to Eskom remain solid. We believe that the resolution of the governance related issues will move Eskom towards improved financial sustainability and ensure security of supply to continue aiding the country’s economic growth path”, said Sean Maritz, Eskom’s Interim Group Chief Executive. 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 Date: 29/11/2017 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.