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Africa, Forex

S.African treasury says it is aware of Eskom risk after Fitch cuts outlook

JOHANNESBURG (Reuters) – South Africa is aware of the “strain and risk” posed by failing state firms, particularly Eskom, and will do more to contain debt, National Treasury said on Friday after the ratings firm Fitch downgraded its credit outlook to negative from stable.

“Government is aware of the strain and risk that state-owned companies, particularly Eskom, present to the fiscal framework,” the treasury said in a statement.

“A team of officials led by Directors-General of National Treasury and Public Enterprises have considered a number of options as a solution to Eskom’s debt challenge in order to ensure its sustainability, and the most viable of these will be communicated in due course.”

(Reporting by Mfuneko Toyana; Editing by Kevin Liffey)

The logo of state power utility Eskom is seen outside Cape Town's Koeberg nuclear power plant

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