Stable outlook: S&P Global upgrades Eskom’s credit rating
S&P Global has upgraded Eskom’s long-term credit rating from B to B+, with a stable outlook.
Image credit: Graeme Williams, Media Club, CC BY-SA 2.0, via Wikimedia Commons
Eskom’s secured and unsecured debt was also upgraded.
“The upgrade reflects the measurable impact of Eskom’s Turnaround Plan, which has stabilised generation, improved financial performance and strengthened governance,” the power utility said in a statement.
Eskom has made strides in improving its operations and looks set to get rid of loadshedding as it has delivered electricity 97.9% of the time in the current financial year.
Eskom also recorded its first return to profitability in eight years.
Eskom CEO Dan Marokane commented on the Turnaround Plan's significance: "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.”