Ratings agency S&P has downgraded Eskom’s credit rating to BB+.
The announcement came late on Thursday and will cause a spike in the cost of borrowing for the beleaguered utility.
S&P also put Eskom on a "negative outlook," citing last week's unexpected suspension of Eskom CEO Tshediso Matona and three other senior executives.
The ratings agency says it doesn't have confidence in government's support plan and that Eskom's operating performance hasn't stabilised because of a spike in costs and the extremely tight generation capacity margin.
I am beginning to think that we are in trouble. I need to calm down. We must avoid any further downgrades by doing the correct things.— Tito Mboweni (@tito_mboweni) March 19, 2015
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This article first appeared on 702 : S&P downgrades Eskom credit rating to junk