S&P Sees ‘Clear Danger’ of Default by South Africa’s Eskom

Yields on Eskom’s dollar bonds climb after Reuss’s comments
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Pylon towers carry electrical power lines across land in Johannesburg, South Africa, on Thursday, Oct. 6, 2016. Eskom Holdings SOC Ltd. is building new electricity stations to end the power cuts that were imposed for about 100 days last year, curbing growth in Africa's most-industrialized nation.Photographer: Waldo Swiegers/Bloomberg

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By Loni Prinsloo

January 18, 2018 at 11:41 AM UTC

This article is for subscribers only.

There is a “clear danger” that South Africa’s state-owned power utility, Eskom Holdings SOC Ltd., could default on its debt, S&P Global Ratings said.

“We are very concerned about liquidity issues,” Konrad Reuss, the managing director of S&P for sub-Saharan Africa, said at an event in Johannesburg Thursday.