{"id":23456,"date":"2012-10-02T12:49:56","date_gmt":"2012-10-02T10:49:56","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=23456"},"modified":"2012-10-03T12:23:03","modified_gmt":"2012-10-03T10:23:03","slug":"telkoms-rating-cut","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/23456\/telkoms-rating-cut\/","title":{"rendered":"Telkom’s rating cut"},"content":{"rendered":"

Credit agency Moody’s<\/a> on Monday (1 October 2012) cut its rating on South African power utility Eskom<\/a>, fixed-line operator Telkom SA<\/a> and 12 municipalities, following a similar downgrade of Africa’s top economy last week.<\/p>\n

It also lowered its outlook on miner Gold Fields Ltd<\/a> to “stable” from “positive”, citing concern about the impact of labour unrest on South Africa’s mining industry.<\/p>\n

The agency said in a statement it cut Eskom’s senior unsecured bond rating by one notch, to Baa3 from Baa2, a move that could drive up borrowing costs for the utility as it looks to fund infrastructure spending.<\/p>\n

The state-owned utility is expected to tap the bond market for some of a planned 300 billion rand in funding.<\/p>\n

Moody’s made a similar cut to Telkom’s rating, which was also lowered to Baa3, while 12 local governments had their long-term ratings cut.<\/p>\n

The agency on Thursday cut the government bond rating of Africa’s top economy by one notch, citing worries about the negative investment climate – from creaking infrastructure to concerns about future political stability.<\/p>\n

Investor sentiment has been soured by a series of wildcat strikes in the mining industry in recent weeks, which have hamstrung production in the world’s top platinum producer and No.4 gold producer.<\/p>\n

Critics have also charged that the strikes have exposed President Jacob Zuma<\/a>‘s ruling African National Congress<\/a> as ineffectual and out of touch with millions of poor South Africans.<\/p>\n

Related articles<\/strong><\/p>\n

Telkom may have broken JSE rules<\/strong><\/a><\/p>\n

Delays putting Telkom behind competitors<\/strong><\/a><\/p>\n

Telkom future in cabinet hands<\/strong><\/a><\/p>\n

Telkom options not tabled before Cabinet<\/strong><\/a><\/p>\n

Telkom shares off 5.3%, awaits fate<\/strong><\/a><\/p>\n

Telkom delivers earnings warning<\/strong><\/a><\/p>\n

Telkom rallies 5% on nationalisation rumour<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Credit agency Moody’s has cut its rating on South African power utility Eskom, fixed-line operator Telkom SA and 12 municipalities, following a similar downgrade of Africa’s top economy last week.<\/p>\n","protected":false},"author":7,"featured_media":18886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[1164,26,1512,65],"class_list":["post-23456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-eskom","tag-headline","tag-moodys","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/23456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=23456"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/23456\/revisions"}],"predecessor-version":[{"id":23466,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/23456\/revisions\/23466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/18886"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=23456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=23456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=23456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}