BUSINESS NEWS - Moody’s credit opinion issued on the heels of its recent decision to keep South Africa’s credit rating one level above junk, said elevated government debt and contingent liabilities risks from state-owned enterprises (SOEs), limited government’s ability to absorb shocks.
The note came after Eskom’s announcement of a R2.5 billion loan from the New Development Bank in China on top of the R420 billion debt it’s already carrying, and there’s no say when the 670 MW of renewable energy it’s meant for, will come on line.
Public Enterprises Minister Pravin Gordhan and Eskom Board chair Jabu Mabuza are expected to deliver an update on the status of the electricity supply.
The biggest problem nearly two weeks ago was a lack of diesel, understood to be between 20 and 25 million litres and various units failing at various plants.
Some diesel was subsequently delivered, however the Eskom media team has remained obdurately mute over how much and at what cost, despite Gordan’s promise they would do better in terms of conveying information.
Gordhan is expected to deliver his update to journalists at an as yet undisclosed power station.
According to Moody’s, Eskom is rated as B2, i.e, its obligations are speculative and subject to high credit risk.
Monday’s loan joins a plethora of others.