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Following the announcement of the Government Support
Plan, Standard & Poor’s (S&P) has affirmed Eskom’s local and foreign currency corporate
credit rating at ‘BBB-’, with a negative outlook. On 20 June 2014, the agency placed
Eskom on negative CreditWatch, this has now been removed.

S&P believes that the Government Support Plan will support the liquidity and credit
metrics of Eskom in the near term. It also demonstrates the extremely high likelihood of
government support to the utility.

“The affirmation of Eskom’s credit rating and the removal of the CreditWatch is a very
constructive action by the agency. Eskom remains confident that the support from
Government will stabilise the credit metrics and the liquidity position. We will continue to
implement the initiatives identified with the support package from government to improve
the financial profile of Eskom and move towards a more stable credit rating environment”,
said Eskom Finance Director Tsholofelo Molefe.
 
Eskom Chief Executive Tshediso Matona said: “Eskom is encouraged by the affirmation of
its credit rating by S&P, this will greatly assist in achieving financial sustainability of Eskom
and to execute its infrastructure investment programme.”

Issued by Eskom