S&P Global Ratings has warned that, while South Africa’s State-owned electricity utility Eskom is currently considered too big to fail, it may well also be “too big to support”, owing to the costs associated with stabilising the group’s finances. Speaking during a webcast on Thursday, sovereign ratings director Ravi Bhatia said that the recently announced financial support package for Eskom would act as a constraint on fiscal consolidation in South Africa and raise the country’s overall debt burden.
