Maki Molapo27 November 2024 | 15:10

Eskom says S&P's ratings upgrade a reflection of its confidence in the utility's ability to meet repayment commitments

The credit ratings agency revised its rating from stable to positive on Wednesday, revising its 'B' long-term global scale foreign and local currency.

Eskom says S&P's ratings upgrade a reflection of its confidence in the utility's ability to meet repayment commitments

FILE: Eskom's Megawatt Park in Johannesburg. Picture: Eyewitness News

JOHANNESBURG - Eskom said that S&P Global Ratings' decision to upgrade its long-term global scale ratings was a reflection of its confidence in the utility's ability to meet its debt servicing and repayment commitments. 

The credit ratings agency revised its rating from stable to positive on Wednesday, revising its 'B' long-term global scale foreign and local currency.

S&P also affirmed Eskom's 'B' issue rating on the group's senior unsecured debt and the 'BB-' foreign currency issue ratings on the government-guaranteed debt.

Eskom's national scale issuer credit rating was also upgraded to 'zaBBB+' from 'zaBBB', and reaffirmed its short-term national scale rating of 'zaA-2'.

The power utility attributed the positive outlook to the impact of the R254 billion financial support package, which helped it significantly reduce its liquidity risks and bolster its financial stability.