February 28, 2018 / 8:42 AM / a year ago

S. Africa Eskom's dollar bonds fall after S&P downgrade

LONDON, Feb 28 (Reuters) - South African state-owned power utility Eskom’s dollar-denominated Eurobonds fell across the curve on Wednesday after S&P Global cut its credit rating deeper into junk territory, warning of default risk.

Eskom’s 2023 eurobond fell 1 cent to 102.9 cents in the dollar according to Tradeweb, and the 2025 issue fell 0.7 cents to trade at 104.5 cents.

S&P Global cut Eskom’s rating to CCC+ from B- with a negative outlook, citing liquidity concerns and insufficient government support that could trigger a default.

Eskom provides virtually all of South Africa’s power and is seen as a risk to the sovereign rating and the economy after years of mismanagement and shoddy governance.

Reporting by Claire Milhench

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