An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton
Moody's says split plan does little to solve South Africa's Eskom financial woes
JOHANNESBURG (Reuters) - The South African government's plan to split struggling state power company Eskom into three entities does little to address the company's financial difficulties, credit ratings agency Moody's said in a research report.
"The move paves the way for a more transparent group with more clearly allocated revenue and cost between business segments," Moody's said, adding that Eskom remained a significant risk to the country's fiscal strength.
"However, in and of itself it does little to address Eskom's financial challenges," Moody's said.
(Reporting by Alexander Winning, editing by Louise Heavens)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.