- S&P has kept their Eskom rating status quo – sub-investment grade and the outlook continues to be negative.
- While Eskom’s financial and operational performances have deteriorated, the company’s liquidity levels have improved significantly from what they were at the same time last year.
- The affirmation is evidence of the slight shift in sentiment by the rating agencies.
Standard & Poor’s has announced its decision to affirm Eskom’s foreign and local currency long-term credit ratings of ‘CCC+’. This means that for the time being, Eskom stays at sub-investment grade and the outlook continues to be negative.
The rating agency’s decision follows the release of Eskom’s interim results announced on 28 November 2018, where the company highlighted significant progress made by the Board and management in their endeavours to transition the company towards sustainability.
While Eskom’s financial and operational performances have deteriorated, the company’s liquidity levels have improved significantly from what they were at the same time last year. Standard & Poor’s sentiment and rationale remain consistent with other ratings agencies and the affirmation is evidence of the slight shift in sentiment by the rating agencies.
Eskom’s newly appointed Group Chief Financial Officer, Calib Cassim said: “we are encouraged by Standard & Poor’s decision to affirm our credit ratings. We view this action as a positive demonstration of the improving sentiments towards Eskom. We remain cognisant of the financial and operational challenges that we need to resolve; we are resolute in our endeavours to steer this company towards desirable operational and financial sustainability.”
“We continue to focus on finalizing Eskom’s strategy blueprint and corporate plan. We will make the necessary decisions to advance this company to a better position, thereby ensuring that we support South Africa’s growth and development plans by ensuring consistent security of supply”, said Phakamani Hadebe, Group Chief Executive at Eskom.
Author: Bryan Groenendaal
Source: Eskom Media Desk
