Credit rating agency Fitch has affirmed Eskom’s Local-Currency Issuer Default rating at ‘B’ with a stable outlook.
The agency further affirmed the power utility’s senior unsecured debt at ‘B’ with a Recovery Rating of ‘RR4’ and its senior unsecured guaranteed debt at ‘BB-’.
“The affirmation reflects the strong links between Eskom and South Africa’s ‘BB- ‘Outlook Stable, under Fitch’s latest Government-Related Entities rating criteria.
“In its detailed update report, Fitch noted Eskom’s operations are improving and the delivery of its business plan may lead to funding on an unguaranteed basis over the medium term,” Eskom said in a statement on Thursday.
Eskom Group Chief Executive, Dan Marokane said the rating is as a result of a steadfast commitment to the Generation Recovery Plan.
“We remain singularly focused on delivering the turnaround plan that is central to continuing to restore Eskom’s operational and financial stability.
“Reaching the milestone of one year without load shedding on Saturday, 16 May advances this stability, as well as the South African and Sub-Saharan Africa economy, competition and the integration of renewable energy,” Marokane said.
READ | Eskom reaches one year of no load shedding
– SAnews.gov.za
