20°C / 22°C
  • Sun
  • 26°C
  • 13°C
  • Mon
  • 29°C
  • 14°C
  • Tue
  • 31°C
  • 14°C
  • Wed
  • 25°C
  • 14°C
  • Thu
  • 29°C
  • 14°C
  • Fri
  • 31°C
  • 17°C
  • Sun
  • 24°C
  • 17°C
  • Mon
  • 21°C
  • 16°C
  • Tue
  • 26°C
  • 15°C
  • Wed
  • 25°C
  • 14°C
  • Thu
  • 24°C
  • 15°C
  • Fri
  • 26°C
  • 16°C
  • Sun
  • 28°C
  • 15°C
  • Mon
  • 31°C
  • 16°C
  • Tue
  • 33°C
  • 17°C
  • Wed
  • 26°C
  • 16°C
  • Thu
  • 31°C
  • 15°C
  • Fri
  • 33°C
  • 19°C
  • Sun
  • 29°C
  • 16°C
  • Mon
  • 31°C
  • 14°C
  • Tue
  • 33°C
  • 15°C
  • Wed
  • 28°C
  • 15°C
  • Thu
  • 32°C
  • 17°C
  • Fri
  • 33°C
  • 16°C
  • Sun
  • 28°C
  • 22°C
  • Mon
  • 26°C
  • 20°C
  • Tue
  • 21°C
  • 19°C
  • Wed
  • 24°C
  • 19°C
  • Thu
  • 27°C
  • 19°C
  • Fri
  • 25°C
  • 20°C
  • Sun
  • 24°C
  • 17°C
  • Mon
  • 20°C
  • 17°C
  • Tue
  • 20°C
  • 15°C
  • Wed
  • 23°C
  • 14°C
  • Thu
  • 22°C
  • 15°C
  • Fri
  • 22°C
  • 14°C
  • Sun
  • 30°C
  • 18°C
  • Mon
  • 25°C
  • 14°C
  • Tue
  • 28°C
  • 14°C
  • Wed
  • 31°C
  • 16°C
  • Thu
  • 28°C
  • 15°C
  • Fri
  • 31°C
  • 15°C
  • Sun
  • 23°C
  • 17°C
  • Mon
  • 19°C
  • 15°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 23°C
  • 16°C
  • Thu
  • 21°C
  • 15°C
  • Fri
  • 23°C
  • 16°C
  • Sun
  • 30°C
  • 17°C
  • Mon
  • 32°C
  • 17°C
  • Tue
  • 35°C
  • 18°C
  • Wed
  • 29°C
  • 18°C
  • Thu
  • 33°C
  • 17°C
  • Fri
  • 34°C
  • 18°C
  • Sun
  • 30°C
  • 16°C
  • Mon
  • 31°C
  • 15°C
  • Tue
  • 28°C
  • 13°C
  • Wed
  • 30°C
  • 14°C
  • Thu
  • 33°C
  • 13°C
  • Fri
  • 31°C
  • 13°C
  • Sun
  • 26°C
  • 16°C
  • Mon
  • 30°C
  • 14°C
  • Tue
  • 21°C
  • 15°C
  • Wed
  • 22°C
  • 14°C
  • Thu
  • 27°C
  • 12°C
  • Fri
  • 24°C
  • 17°C
  • Sun
  • 23°C
  • 17°C
  • Mon
  • 19°C
  • 14°C
  • Tue
  • 20°C
  • 13°C
  • Wed
  • 26°C
  • 13°C
  • Thu
  • 21°C
  • 15°C
  • Fri
  • 23°C
  • 14°C

Moody’s criticises Eskom’s request to transfer its debt to the state

Eskom has requested that government’s guaranteed debt of R100 billion be transferred to the state.

FILE: A Moody's sign stands in front of the company headquarters in New York. Picture: AFP.

JOHANNESBURG - Rating agency Moody’s has criticised a request by Eskom to transfer a large section of its debt to the government, saying this will place a heavy burden on the state.

President Cyril Ramaphosa announced on Talk Radio 702 and CapeTalk on Thursday night that the government was looking at different solutions for Eskom.

He says the parastatal has a debt of between R250 and R475 million.

WATCH: President Ramaphosa in conversation with Xolani Gwala

Eskom has requested that government’s guaranteed debt of R100 billion be transferred to the state.

However, Moody’s says debt transfer will increase the government’s debt levels by around two percentage points.

It also says the decision to transfer Eskom debt comes with what it calls a “moral hazard”.

Moody’s says credit implications for the country will then depend on whether effective measures are taken to improve Eskom’s financial health and reduce future contingent liability risks for the government.

Ramaphosa says the task team on Eskom, set to be announced on 14 December, will focus on making sure the parastatal becomes economically viable.

(Edited by Zamangwane Shange)

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus