Eskom's turnaround plan pays off as S&P Global Ratings upgrades its credit rating
Power utility Eskom has received a boost in its turnaround efforts, with S&P Global Ratings upgrading the utility’s long-term credit rating
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Power utility Eskom has received a boost in its turnaround efforts, with S&P Global Ratings upgrading the utility’s long-term credit rating from B to B+ and shifting its outlook to stable.
This comes just over a month after the utility announced that it had delivered its first annual profit in eight years and significantly improved the stability of its generation fleet. Eskom has also largely managed to keep the lights on this year, delivering far more consistent electricity supply than in previous periods.
The global rating agency said the upgrade reflects measurable gains in Eskom’s operational performance and financial stability, noting that the utility’s turnaround efforts have begun to deliver consistent and credible results.
The power Utility welcomed the move, saying it reflects the progress made under its turnaround plan.
"Eskom welcomes S&P Global Ratings’ decision to upgrade the company’s foreign and local currency long-term credit ratings from B to B+, with a stable outlook," the power utility said.
"The upgrade also applies to Eskom’s senior secured and unsecured debt, while government-guaranteed foreign currency debt was raised from BB- to BB+. Eskom’s national scale rating improved from zaBBB+/zaA-2 to zaAV/zaA-1".
Eskom’s Group Chief Executive, Dan Marokane, said the turnaround plan had played a central role in restoring stability across the business.
“The Turnaround Plan has been pivotal in restoring Eskom’s operational and financial stability. We have moved decisively from a generation crisis to a phase of reliability and disciplined management. Our focus remains on providing affordable, secure electricity for South Africa while driving the transition to lower-carbon energy,” Marokane said.
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