Moody's Proffer Solution to Eskom Funding in SA

Moody’s has given a possible solution to South Africa on her financial problems. The Credit rating agency says the country can fund the needed bailout for electric power utility Eskom but it must make more cuts in other areas. Moody's Credit rating Agency Source: Pionline.com  Moody’s made the announcement in a statement released on Thursday, as South Africa prepares its mid-year budget review. With this advice the government of President Cyril Ramaphosa has room to ensure the lights stay on. Eskom, supplies more than 90 percent of the power that earned South Africa its reputation as the most industrialised economy. But lack of adequate financial management and poor billing regime amidst sales decline and mounting has cause it to depend on government bailouts. It is regularly cited by ratings agencies as one of the main threats to South Africa’s creditworthiness and economic growth.