Eskom’s rating remains at ‘B’ from Fitch Ratings, with a stable outlook

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Eskom’s rating remains at ‘B’ from Fitch Ratings, with a stable outlook

Eskom has applauded Fitch Ratings’ decision to maintain the power utility’s rating at ‘B’
with a stable outlook.
According to the electrical provider, the rating is evidence of its attempts to improve the
entity’s financial situation.

“The latest decision by the rating agency is an encouragement in the cooperative and
ongoing efforts to restore Eskom’s financial stability, improve performance and ensure
its long-term sustainability,” Eskom said.
The power utility explained that the government’s decision to provide Eskom with debt
relief over the next three years proved pivotal.

It was decided to make it possible for the electric company to stabilize its financial
situation, carry out critical power plant maintenance, restructure, and invest.
“Central to the rating agency’s decision is Eskom’s link to the South African government
as a state-owned enterprise. The decision also comes on the back of the debt relief
package for Eskom as announced by the Minister of Finance in February this year.

“As stated in the Eskom Debt Relief Bill, the government will, over the next three years,
provide Eskom with debt relief of R254 billion.

“This will be in the form of advances of R78 billion in the 2023/24 financial year, R66
billion in the 2024/25 financial year and R40 billion in the 2025/26 financial year as well
as a takeover of up to R70 billion of Eskom’s loan portfolio in 2025/26 financial year,”
Eskom said.

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