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Eskom Unbundling Fails to Slash Solvency Risk, Futuregrowth Says

(Bloomberg) — Futuregrowth Asset Administration said that despite efforts to form South Africa’s Eskom Holdings SOC Ltd. winning, including a route of of unbundling its divisions into separate entities, “the core rep 22 situation of debt” has but to be addressed.  

The utility that reported a fourth straight pudgy-year loss on Aug. 31 has very high finance costs on a debt pile of about 400 billion rand ($28 billion). Eskom expects to separate its transmission division from the utility by the cease of the year, with period and distribution units to practice in 2022. 

“All these interventions stay now not take care of Eskom’s core rep 22 situation: the debt entice,” Sithembiso Garane, Futuregrowth’s head of listed credit rating, said in a display camouflage on Thursday.  “Irrespective of the divisionalization and liberalization of the vitality sector, a debt resolution is aloof required.”

“Main vitality designate stress and the shortcoming to personal worker costs proceed to pose a essential rep 22 situation in the utility expenditure reduction program,” Garane wrote. 

©2021 Bloomberg L.P.

Bloomberg.com

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