Moody’s says split plan does little to solve Eskom financial woes

The South African government’s plan to split struggling state power company Eskom into three entities does little to address the company’s financial difficulties, credit ratings agency Moody’s said in a research report.

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“The move paves the way for a more transparent group with more clearly allocated revenue and cost between business segments,” Moody’s said, adding that Eskom remained a significant risk to the country’s fiscal strength.

“However, in and of itself it does little to address Eskom’s financial challenges,” Moody’s said. 

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