Thursday, 01 June 2023: Eskom notes Fitch Ratings’ decision to affirm the organisation’s Long-Term Local-Currency Issuer Default Rating (IDR) at ‘B’, with a Stable Outlook.
The ratings decision was announced by Fitch on Tuesday, 30 May 2023. Central to the rating agency’s decision is Eskom’s link to the South African government as a state-owned enterprise. The decision also comes on the back of the debt relief package for Eskom as announced by the Minister of Finance in February this year.
As stated in the Eskom Debt Relief Bill, government will, over the next three years, provide Eskom with debt relief of R254 billion. This will be in the form of advances of R78 billion in 2023/24 financial year, R66 billion in 2024/25 financial year and R40 billion in 2025/26 financial year as well as a takeover of up to R70 billion of Eskom’s loan portfolio in 2025/26 financial year.
The latest decision by the rating agency is an encouragement in the cooperative and ongoing efforts to restore Eskom’s financial stability, improve performance and ensure its long-term sustainability.