Eskom fund plan needs higher SA power rates, Moody’s says

MoneyWeb – “The effect of the proposed measures on Eskom’s credit metrics would be marginal.”

Eskom will need to raise tariffs to supplement South African government plans to provide R20 billion of funding for the state-owned power producer, Moody’s said.

“The proposed equity injection would provide much needed liquidity and ease the short-term funding pressure on Eskom,” analysts at the New York-based credit-rating company including Paul Marty wrote in a note yesterday. “The effect of the proposed measures on Eskom’s credit metrics would be marginal.”