Moody's may cut Eskom

Moody's Investors Service said it placed Eskom Holdings Ltd.'s A1 local-currency and A2 foreign-currency ratings on review for possible downgrade.

The review reflects concerns over the potential negative effects of possible less-than-expected tariff increases on Eskom's financial profile, Moody's said, and that government support for Eskom may not be as clear.

The action follows news that the government supports a more smoothed approach to Eskom's revenue profile, the agency added.

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