February 11, 2019 / 10:33 AM / 2 months ago

Moody's says split plan does little to solve South Africa's Eskom financial woes

An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton, February 24, 2016. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) - The South African government’s plan to split struggling state power company Eskom into three entities does little to address the company’s financial difficulties, credit ratings agency Moody’s said in a research report.

“The move paves the way for a more transparent group with more clearly allocated revenue and cost between business segments,” Moody’s said, adding that Eskom remained a significant risk to the country’s fiscal strength.

“However, in and of itself it does little to address Eskom’s financial challenges,” Moody’s said.

Reporting by Alexander Winning, editing by Louise Heavens

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below