Johannesburg: Credit rating agency Fitch has affirmed Eskom's Local-Currency Issuer Default rating at 'B' with a stable outlook. The agency also confirmed Eskom's senior unsecured debt at 'B' with a Recovery Rating of 'RR4' and its senior unsecured guaranteed debt at 'BB-'. These affirmations underscore the connections between Eskom and South Africa's 'BB-' Outlook Stable, as per Fitch's latest Government-Related Entities rating criteria.
According to South African Government News Agency, Fitch's detailed update report highlighted improvements in Eskom's operations. The agency indicated that the execution of Eskom's business plan might result in funding on an unguaranteed basis over the medium term. Eskom expressed this in a statement issued on Thursday.
Eskom Group Chief Executive, Dan Marokane, attributed the rating to the organization's dedicated commitment to the Generation Recovery Plan. He emphasized their unwavering focus on implementing the turnaround plan, essential to maintaining and enhancing Eskom's operational and financial stability. Marokane pointed out that achieving one year without load shedding on Saturday, 16 May, contributes to this stability and benefits the South African and Sub-Saharan Africa economy, competition, and the integration of renewable energy.