Credit ratings agency Fitch has maintained State-owned power utility Eskom's long-term local-currency issuer default rating at ‘B’ with a stable outlook.
Fitch maintained Eskom’s senior unsecured debt at ‘B’ with a recovery rating of ‘RR4’, and its senior unsecured guaranteed debt at ‘BB-’.
The ratings agency also maintained Eskom’s standalone credit profile at ‘ccc+’, Eskom says.
In its detailed update report, Fitch notes that Eskom's operations are improving and that the delivery of the utility’s business plan may lead to funding on a non-guaranteed basis over the medium term.
The rating also reflects the strong links between Eskom and South Africa’s rating of ‘BB-‘ with a stable outlook, under Fitch’s latest government-related entities rating criteria, the utility notes.
“We remain focused on delivering the turnaround plan to restore Eskom’s operational and financial stability.
“Having achieved one year without loadshedding reflects this stability, as well as the stability of the South African economy and sub-Saharan Africa economy, and Eskom's stability as competition and the integration of renewable-energy increases,” says Eskom group CE Dan Marokane.
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