Zuko Komisa
S&P Global upgrades Eskom’s credit rating from ‘CCC+ to ‘B’.
Eskom has applauded S&P Global’s move to raise the power utility’s credit rating from CCC+ to “B,” noting that the company’s senior secured and senior unsecured debt is expected to remain stable.
Furthermore, Eskom’s national scale rating for South Africa was upgraded by S&P Global from “zaB/zaB” to “zaBBB/zaA-2.”
S&P acknowledged the government’s R254 billion debt relief package as key in the electricity company’s credit quality.
“In their rationale, the credit rating agency stated that the upgrade is due to their expectation that the South African government’s R254 billion financial support package, as part of the Eskom Debt Relief Act signed into law on 7 July 2023, will cover Eskom’s debt servicing and repayment obligations over the current and coming two financial years resulting in an improvement of the company’s credit quality.
“The stable outlook reflects S&P Global’s view that Eskom’s creditworthiness will continue to benefit from explicit and timely support from the South African Government, facilitating a strengthening of Eskom’s liquidity position and less risk of default as the debt relief agreement is implemented as stipulated,”
Eskom said in a statement
#EskomMediaStatement
— Eskom Hld SOC Ltd (@Eskom_SA) November 26, 2023
S&P Global Ratings upgrades Eskom’s credit ratings and revises outlook pic.twitter.com/qkc7kcSqPD
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