Moody’s boosts Eskom’s ratings outlook to positive after budget

Moody’s Investors Service improved its outlook on Eskom Holdings’s debt ratings to positive after South African Finance Minister Enoch Godongwana announced last week the government could take over a substantial portion of the power company’s debt. Moody’s boosted the outlook from negative, signaling that the next ratings action may now be an upgrade instead of another downgrade. It affirmed the utility’s long-term corporate family rating at Caa1, seven levels below investment grade.