Analysts Lehman Brothers think the likelihood of an Eskom credit downgrade in coming weeks may have increased as the credit rating agencies were probably looking for it to be given extra money after the smaller-than-requested tariff award by Nersa, but this has not happened.

This view comes after the government announced on Friday that it would restructure the promised R60-billion loan for the energy parastatal Eskom.

Instead of being spread over five years, the funds will now be spread over three years in 10, 30 and R20-billion instalments.

"There is no new money, however, as the Treasury wishes to push for the implementation of more stringent demand-side management and address concerns about macro-fiscal position," noted the analysts.

I-Net Bridge