Eskom has welcomed the decision by global ratings agency S&P Global to upgrade the power utility\u2019s credit rating to \u2018B\u2019 from \u2018CCC+\u2019 with a stable outlook on the company\u2019s senior secured and senior unsecured debt.<\/p>\n\n\n\n
In addition, S&P Global also upgraded Eskom\u2019s South Africa national scale rating to \u2018zaBBB\/zaA-2\u2019 from \u2018zaB\/zaB\u2019.<\/p>\n\n\n\n
Eskom Acting Group Chief Executive Calib Cassim said: \u201cEskom welcomes the decision to upgrade the company\u2019s credit rating by S&P Global. We continue to work with key stakeholders, particularly shareholder ministries, as we implement our turnaround plan with a focus on key strategic objectives which include operations and financial recovery; people, culture and ethics, and legal separation of the business.\u201d<\/p>\n\n\n\n
The credit ratings agency cited the government\u2019s R254 billion debt relief package as key in the electricity company\u2019s credit quality.<\/p>\n\n\n\n
\u201cIn their rationale, the credit rating agency stated that the upgrade is due to their expectation that the South African government\u2019s R254 billion financial support package, as part of the Eskom Debt Relief Act signed into law on 7 July 2023, will cover Eskom\u2019s debt servicing and repayment obligations over the current and coming two financial years resulting in an improvement of the company\u2019s credit quality.<\/p>\n\n\n\n
\u201cThe stable outlook reflects S&P Global\u2019s view that Eskom\u2019s creditworthiness will continue to benefit from explicit and timely support from the South African Government, facilitating a strengthening of Eskom\u2019s liquidity position and less risk of default as the debt relief agreement is implemented as stipulated,\u201d Eskom said.<\/p>\n\n\n\n