- South Africa’s state owned energy utiltiy, Eskom, has welcomed the decision by Moody’s Investors Service to upgrade the organisation’s rating outlook from positive to stable.
- Coupled with the upgrades of several key ratings, the stable outlook will improve Eskom’s creditworthiness.
The Eskom Debt Relief Act was a key factor in the rating upgrades. The Act, which was enacted on 05 July 2023, allows the government to provide Eskom with debt relief of R254 billion over the next three years. Eskom has already received the first tranche of R16 billion for the current financial year.
“The financial support from government has removed the financial barriers and bolstered Eskom’s financial position. This has enabled us to plan ahead for the implementation of the necessary planned maintenance on the generation fleet, maintain and strengthen the network thereby contributing towards improved performance and long-term sustainability,” remarked Eskom Acting Group Chief Executive,” Calib Cassim.
“The decision by Moody’s Investors Service is reassuring in our efforts to turn Eskom around,” added Cassim.
Author: Bryan Groenendaal
