ABU DHABI, United Arab Emirates, Dec. 09, 2019 (GLOBE NEWSWIRE) -- CRO Advisors concludes that Moody’s Investment Grade Rating for South Africa is Borderline Malfeasance.
Pursuant to CRO Advisors Independent CRO (ICRO) Public Report on South Africa and Eskom issued on 10.17.19, South Africa Sovereign Credit Rating equates to no better than a “B1” highly speculative, non-investment grade rating by Moody’s.
The South African Treasury does not have the ability to service the consolidated foreign loans, debts, and funding obligations that are fundamental primary obligations for Eskom, and other State-Owned Enterprises (SOEs) and parastatals, when combined with normal borrowing requirements;
The full public version of the CRO Advisors Public Report issued on 10.17.19 may be found at:
https://www.dropbox.com/s/9cwnnhchwepraqk/Eskom%20Independent%20CRO%20Advisor%20Report%2010.17.19.pdf?dl=0
CRO Advisors independent analysis indicates that Eskom’s ~500BN on balance sheet debt, ~128BN off balance sheet debt, and 1,072BN in unavoidable cost over next 5 years, represents a staggering 76% of South Africa’s total current debt.
Furthermore, CRO Advisors estimates South Africa’s total debt obligations to be ~5.3 Trillion Rand (353BN USD), including Eskom’s total consolidated liabilities and substantial ongoing capital requirements, excluding other substantial cash requirements for other failing State-Owned Companies, excluding sizable Tax collection gaps and other sizable growing fiscal gaps.
CRO Advisors has firmly concluded that Eskom must immediately undergo an independent detailed and comprehensive “Forensic Audit” on behalf of all Creditors, Vendors, Unions and Stakeholders.
The full public version of the CRO Advisors Eskom Restructuring Update issued on 12.5.19 may be found at:
https://www.dropbox.com/s/n7vs48xk4ohnbur/Eskom_CRO%20Advisors%20Restructuring%20Update.pdf?dl=0
About CRO Advisors:
CRO Advisors works privately with Sovereign Governments, Institutional Investors and other stakeholders with exposure to the Global Energy & Infrastructure sector. The Firm engages with Sovereign Wealth Funds, Private Equity and Specialized Lending Funds to mobilize large pools of capital for our clients as part of our restructuring and turnaround mandates. CRO Advisors are specialists in the most complex restructuring and recapitalization of distressed Sovereign Government Assets, and Infrastructure companies and assets globally. Bankruptcy, Debtor in Possession (DIP) Finance, Business Rescue and Turnaround. Focus is on very large and complex debt and operational restructuring's in the Energy & Infrastructure sectors, including Power Generation, Transmission, Distribution, Natural Gas Pipeline, Fuel Storage Terminals, and other critical infrastructure assets.