S&P Advice to South Africa: Beware What You Say About Eskom Debt

Talks around restructuring Eskom Holdings SOC Ltd.’s bonds must be approached carefully to avoid spooking the market, according to S&P Global Ratings, Bloomberg News reported. Public Enterprises Minister Pravin Gordhan said on Thursday the government will consult with the power utility’s debt holders on any reorganization and that there isn’t any real concern about haircuts. “Whether you are talking about a haircut or a re-profiling or a restructuring, one has to tread very carefully because it could possibly lead to what is seen as a distressed-debt exchange and be called a default,” S&P’s managing director and regional manager for Africa, Konrad Reuss, said in an interview on Friday. “That would be quite unsettling for the markets.” Read more