Pretoria - Electricity parastatal Eskom has expressed concern at rating agency Standard &Poor's announcement to downgrade its credit rating by one notch.
The rating agency on Wednesday announced that it had downgraded Eskom's rating by a notch as a consequence of its recent decision to downgrade South Africa's sovereign rating.
The rating agency on Monday lowered the country's long-term foreign and local currency ratings to BBB and A- respectively.
"In accordance with its criteria for government-related entities, Standard &Poor's has therefore lowered Eskom's long-term foreign and local currency credit ratings from BBB from BBB+. Although Eskom's credit rating remains investment grade, with the support of government, the recent downgrades by Moody's and Standard & Poor's are a concern," said the parastatal.
Eskom said that an investment grade credit rating was critical to access the cost-effective funding needed to ensure that Eskom and the industry can invest in the electricity infrastructure which South Africa needs. - SAnews.gov.za
