Eskom knocks rand

File: The rand has lost close to 10 percent since 1 August, battered by local and global issues.

File: The rand has lost close to 10 percent since 1 August, battered by local and global issues.

Flickr/Cory Doctorow

CAPE TOWN - The rand has suffered another plunge in reaction to a Moody's statement on Eskom.

The credit rating agency has painted a bleak picture for the country in its review of the power utility's financial results.

It says Eskom's unsustainable capital structure means increased support has become necessary.

READ: Eskom needs urgent turnaround plan: Moody's

Investor reaction has been sharp and quick, with the rand losing 20 cents against the dollar late Tuesday afternoon.

Moodys is the only one of three ratings agencies which still ranks the country on investment grade.

Source
eNCA