Moody's rates Eskom bonds Baa2

Moody's Investors Service said it assigned a provisional Baa2 long-term senior unsecured rating to the proposed issuance of a benchmark dollar bond offering of Eskom Holdings Ltd. The size, maturity and completion of the notes remain subject to market conditions.

The outlook is stable.

"The (P)Baa2 rating reflects the strategic importance of Eskom to South Africa (rated A3) as its dominant vertically integrated utility, but at the same time incorporates the execution risks related to a large and prolonged programme of capital investment needed to build out essential electricity infrastructure in South Africa," Helen Francis, a Moody's vice president, said in a statement.

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