South Africa - 04

South Africa: Credit Rating Review Ups Pressure on State-Owned Companies

Moody’s announced on 14 September that it had placed Eskom and various other SOEs on review for downgrade. This followed various investment managers indicating that they were either suspending or reducing lending to SOEs, including Eskom, over governance and transparency concerns. Eskom has indicated that it will engage with Moody’s, but the announcement will place additional pressure on the company’s management, which is already facing scrutiny relating to questionable dealings with the Gupta family.

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