Rand slips to worse than R14.15/$ after warning by Moody’s

The rand was weaker on Friday morning, breaking through R14.15 against the dollar, after credit ratings agency Moody's Investors Service warned that the R59bn bailout for Eskom was credit negative for SA.

Earlier this week, finance minister Tito Mboweni announced plans of a R59bn bailout for Eskom over the next two years under the special appropriation bill. The minister said that due to the possibility of lower tax revenue, the government may need to increase its borrowing requirements for theMoody's said the lack of a turnaround strategy for Eskom to be more financially stable “exacerbates” the problem of the government.

“The delay in restructuring Eskom has to be testing their patience and the proverbial can has pretty much been kicked as far as it can go. I can’t imagine there is more room to manoeuvre anymore,” Butler said.

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