Moody's: Eskom bonds to stable

Moody's Investors Service said it changed the outlook on the Baa2 senior unsecured bonds of Eskom Holdings Ltd. to stable from negative.

The rating action reflects a number of measures that have been taken over the last few months in order to strengthen the company and allow it to continue with essential investments in South Africa's electricity infrastructure, the agency said.

According to Moody's, the South African Government (foreign- and domestic-currency ratings, rated A3 stable) has recently announced that it will increase its guarantee limit from R176 billion to R350 billion for the company.

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