Moody’s Ratings (“Moody’s”) has affirmed Eskom’s B2 long-term corporate family rating, B2-PD probability of default rating, B2 senior unsecured notes ratings, (P)B2 rating on the global medium-term notes programme, caa1 baseline credit assessment and Baa3.za national scale corporate family rating.
The outlook remains stable.
Moody’s also affirmed the Ba2 backed senior unsecured ratings on notes that benefit from an unconditional and irrevocable government guarantee.
Moody’s has attributed the affirmation of credit ratings to Eskom’s improving operational performance, strengthened cash flow generation and liquidity position, supported by government debt relief measures.
The rating agency has also noted what they consider to be ongoing constraints, including rising municipal debt arrears, regulatory challenges associated with tariffs, significant capital expenditure requirements and execution risks associated with the ongoing unbundling process.
“The utility remains focused on delivering the turnaround plan to restore Eskom’s operational and financial stability. Earlier this month, Eskom reached the milestone of one year without loadshedding that advances the stability of the grid and energy security in South Africa, as well as market liberalisation and the integration of renewable energy to provide a platform for the South African and Sub-Saharan Africa economy to grow from,” said Eskom’s Group Chief Executive, Dan Marokane.
The detailed report can be downloaded from Moody’s website.
About Eskom and Electricity – Customer Base: Serves more than 3 million customers across South Africa.
Virgo Moon
The Intercontinental Hotel at O.R. Tambo International Airport was named as the winner of the prestigious 2012 World Luxury Airport Hotel award at the global tourism industry awards.