Eskom bailout credit negative for SA, says Moody's

A second multi-billion bailout in under half a year to keep Eskom afloat doesn't sit well in Moody's books. The ratings agency sees the planned R59 billion cash injection as an additional drain on the fiscus and as such, views it as credit negative.

For now, Moody's has the country's debt at investment grade, what is likely to happen should this Eskom appropriation bill be adopted?

Lucie Villa, Lead Sovereign Analyst for SA at Moody's joined Business Day TV with her outlook. ​
Loading player...