Fitch downgrades Eskom, debt to BB-

Fitch Ratings said it downgraded Eskom Holdings SOC Ltd.'s long-term local currency issuer default rating and unguaranteed local currency senior unsecured ratings to BB- from BB+ and maintained them on rating watch negative.

The agency also affirmed the government-guaranteed local currency senior unsecured debt ratings at BB+.

At the same time Fitch downgraded Eskom's national long-term rating to A(zaf) from AAA(zaf) and national short-term rating to F1(zaf) from F1+(zaf), and maintained them on rating watch negative.

Fitch said the downgrade reflects the weakening liquidity of Eskom and uncertainty about its ability to meet its financial obligations in the short-term. The negative watch reflects the potential for further downgrade in case of lack of government's tangible support or improved liquidity.

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