It says Moody's downgraded the State-owned Land Bank as a result of ongoing delays in the implementation of the financial institution's restructuring plan and related liability and equity solutions. The latter is a necessary pre-requisite to allow the bank to prevent further defaults. Agri SA explains that such delays increase the risk that a liability solution between the bank and government will not be agreed on, which will result in financial losses for lenders. Meanwhile, with regard to State-owned power utility Eskom, Agri SA believes the action by Moody's was warranted, owing to the combination of Eskom's unsustainable capital structure and continuing financial needs, coupled with a high probability of debt reorganization.