14/06/2017 07:26 SAST | Updated 14/06/2017 07:29 SAST

Moody's Downgrades Eskom

The power utility, Sanral, Acsa and City Power are among the latest institutions to be downgraded.

Cem Ozdel/Anadolu Agency/Getty Images

Ratings agency Moody's has downgraded the credit ratings of Eskom, Sasol, MTN, Acsa and seven other South African corporates, News24 reported on Wednesday. The announcement was reportedly made late on Tuesday.

This follows the decision by Moody's to downgrade South Africa's long term foreign and local currency debt ratings by one notch, with a negative outlook, on Friday. On Monday, South Africa's top five banks, three development finance institutions, certain City Power and Sanral credit ratings and 10 regional and local governments were downgraded, News24 reported.

Eskom's chief financial officer Anoj Singh reportedly said Eskom thought the downgrade was primarily driven by the sovereign downgrade.

In a statement, Singh said:

"Eskom has secured 53% of this fiscal year's funding requirement and we remain resolute that we will fully execute the required funding for the year, albeit under challenging market conditions.

"Our liquidity levels remain healthy and Eskom's financial profile continues to improve and stabilise.

"Backed by the availability of the government guarantees and the stable financial profile; we do not foresee significant impediments in the execution of the remainder of the FY17/18 funding requirement."

Bidvest Group, Growthpoint Properties, Barloworld, Fortress Income Fund, Hyprop Investments and Telkom were among the other entities reportedly downgraded.