S&P further downgrades South Africa’s Eskom

Phakamani Hadebe

Global credit rating agency, Standard & Poors said there imminent risks of default facing Eskom, South Africa’s public power.

The rating agency downgraded the credit rating for South Africa’s state-run power utility Eskom to CCC+ from B- on Wednesday, citing liquidity concerns and insufficient government support that could trigger a default.

“Eskom remains at risk of facing a distressed exchange situation or default in the next six months despite securing 30 billion rand ($2.56 billion) in short-term funding from local and international funders so far this year,” the agency said in a statement.