South Africa: Downgrades bring Eskom one step closer to the end of the line

Dogged by allegations of corruption, a cripplingly expensive build programme, falling demand, and competition from off-grid alternatives, South Africa’s beleaguered utility Eskom suffered a further blow late last month as its credit rating was downgraded by ratings agencies Moody’s Investor Services and Standard and Poor’s (S&P), while Fitch put several ratings on negative watch. The moves followed an earlier decision by S&P to downgrade the sovereign rating and by Moody’s to place the sovereign on review for downgrade.