Moody’s rates Eskom notes Baa3

Moody's Investors Service said it assigned a rating of Baa3 to the proposed dollar-denominated bond issuance under the $4 billion global medium-term note program of Eskom Holdings SOC Ltd.

The issuance will benefit from the unconditional and irrevocable guarantee of South Africa, rated Baa3 with a stable outlook.

At the same time, the agency affirmed the provisional B3/B3 senior unsecured ratings of the issuances under the program.

Moody's also affirmed all other ratings of Eskom, including the the B2 long term corporate family rating, the eurobond rating of B2, all other senior unsecured notes rated B3, the probability of default rating of B3-PD and the national scale rating of Ba2.za.

The outlook on all non-guaranteed ratings is negative.

“The Baa3 rating assigned to the proposed bond is in line with that of the sovereign and reflects the unconditional and irrevocable guarantee of the South African Government,” Moody’s said in a news release.

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