Moody’s reviews Eskom

Moody's Investors Service said it placed the Ba1 senior unsecured and the provisional Ba1 senior unsecured medium-term note ratings of Eskom Holdings SOC Ltd. on review for downgrade.

Eskom's senior unsecured bond ratings are primarily driven by the agency’s estimate of a high level of potential government support in case of financial distress.

Given Eskom's strong linkage with the South African government and its high sensitivity to changes in the sovereign credit profile, the review for downgrade on Eskom's Ba1 senior unsecured ratings reflects the weakening of the South African government's credit profile captured in the review for downgrade on South Africa's Baa2 ratings initiated on March 8.

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