Johannesburg: Global ratings agency, S and P, has upgraded Eskom's foreign and local currency long-term credit ratings from B to B+, with a stable outlook. The upgrade is a significant development for the power utility, as it indicates a positive shift in its financial health and operational stability.
According to South African Government News Agency, the upgrade also applies to Eskom's senior secured and unsecured debt. Furthermore, the government-guaranteed foreign currency debt was elevated from BB- to BB+. Eskom's national scale rating saw improvement from zaBBB+/zaA-2 to zaAV/zaA-1. This reflects the measurable impact of Eskom's Turnaround Plan, which has stabilized generation, improved financial performance, and strengthened governance. Notably, operational improvements have been substantial, with Eskom delivering electricity 97.9% of the time in the current financial year, an increase from 96% in FY2025.
The power utility reported that this operational stability has been matched by strong financial performance, marking their first profitability in eight years in FY2025. Eskom Group Chief Executive, Dan Marokane, highlighted the company's progress, stating that the turnaround plan has been crucial in restoring both operational and financial stability. Marokane emphasized that Eskom has transitioned from a generation crisis to a phase of reliability and disciplined management, with a focus on providing affordable, secure electricity for South Africa and advancing the transition to lower-carbon energy.