South Africa Yields Rise, Eskom's Fall as Bailout Talk Grows
- South Africa may swap Eskom bonds for state debt: Intellidex
- Government rand bonds fall along with rand on fiscal concerns
Companies such as power utility Eskom are reeling after repeated management and strategy bungles and have indicated they need aid to survive.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Yields on Eskom Holdings SOC Ltd.’s dollar bonds traded near one-year lows while those on government debt jumped amid renewed speculation that the South African government may take over the cash-strapped electricity company’s debt.
Moody’s Investors Service now includes the power producer’s government-guaranteed debt in its assessment of the nation’s fiscal situation because the utility can’t service its obligations without the state’s backing, it said in an emailed report Wednesday.