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S&P upgrades Eskom’s credit ratings from stable to positive

S&P upgrades Eskom’s credit ratings from stable to positive

S&P Global Ratings Agency (S&P) has upgraded power utility Eskom’s long-term global scale foreign and local currency ratings from stable to positive.

S&P affirmed Eskom’s ‘B’ issue rating on the group’s senior unsecured debt from ‘CCC+’ and the ‘BB-’ foreign currency issue rating on the government-guaranteed debt.

Furthermore, Eskom’s South Africa national scale issuer credit rating was upgraded to ‘zaBBB+’ from ‘zaBBB’, with the short-term national scale rating of ‘zaA-2’ reaffirmed.

Eskom’s ratings are supported by government bailouts, including a R254 billion financial support package introduced through the Eskom Debt Relief Act, which was signed into law in 2023.

This package ensures Eskom can meet its debt servicing and repayment commitments through 2026, significantly reducing liquidity risks and bolstering its financial stability.

Eskom’s Group Chief Executive, Dan Marokane, said the upgrade clearly indicates the progress made in strengthening Eskom’s financial and operational foundation.

“It sends a positive message to investors and stakeholders, reinforcing trust in our ability to deliver energy security while driving long-term sustainability.

“Our success in improving generation performance and achieving over R16 billion in diesel savings highlights the efficiency gains we are driving. Sustaining this momentum will support Eskom’s path to profitability and reduce our reliance on fiscal support in the future,” Marokane said.

Meanwhile, the power utility said this credit rating upgrade underscored the progress in restoring Eskom’s financial health and operational reliability.

Eskom said it was committed to delivering on its mandate to power South Africa’s economic future while creating value for all stakeholders.

“Eskom will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while futureproofing the organisation to enable energy security, growth, and long-term sustainability for the benefit of South Africa and sub-Saharan Africa.” – SAnews.gov.za

Gabisile
Wed, 11/27/2024 – 09:30

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Wednesday, November 27, 2024

S&P Global Ratings Agency (S&P) has upgraded power utility Eskom’s long-term global scale foreign and local currency ratings from stable to positive.

S&P affirmed Eskom’s ‘B’ issue rating on the group’s senior unsecured debt from ‘CCC+’ and the ‘BB-’ foreign currency issue rating on the government-guaranteed debt.

Furthermore, Eskom’s South Africa national scale issuer credit rating was upgraded to ‘zaBBB+’ from ‘zaBBB’, with the short-term national scale rating of ‘zaA-2’ reaffirmed.

Eskom’s ratings are supported by government bailouts, including a R254 billion financial support package introduced through the Eskom Debt Relief Act, which was signed into law in 2023.

This package ensures Eskom can meet its debt servicing and repayment commitments through 2026, significantly reducing liquidity risks and bolstering its financial stability.

Eskom’s Group Chief Executive, Dan Marokane, said the upgrade clearly indicates the progress made in strengthening Eskom’s financial and operational foundation.

“It sends a positive message to investors and stakeholders, reinforcing trust in our ability to deliver energy security while driving long-term sustainability.

“Our success in improving generation performance and achieving over R16 billion in diesel savings highlights the efficiency gains we are driving. Sustaining this momentum will support Eskom’s path to profitability and reduce our reliance on fiscal support in the future,” Marokane said.

Meanwhile, the power utility said this credit rating upgrade underscored the progress in restoring Eskom’s financial health and operational reliability.

Eskom said it was committed to delivering on its mandate to power South Africa’s economic future while creating value for all stakeholders.

“Eskom will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while futureproofing the organisation to enable energy security, growth, and long-term sustainability for the benefit of South Africa and sub-Saharan Africa.” – SAnews.gov.za

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