Following the announcement of Eskom’s 2015 interim financial results this week, Moody’s Investors Service has affirmed Eskom’s Ba1 senior unsecured credit rating with a stable outlook. Standard & Poor’s (S&P) also affirmed Eskom’s local and foreign currency corporate credit rating at ‘BB+’, with a negative outlook.

Both rating agencies believe that the implemented Government Support Plan of a R23 billion equity injection and the conversion of the R60 billion subordinated loan into equity support the liquidity and credit metrics of Eskom in the foreseeable future. This also demonstrates the extremely high likelihood of government support to the utility.

Eskom’s Chief Financial Officer, Anoj Singh said: “We are pleased that the ratings agencies have affirmed Eskom’s credit rating. These constructive actions demonstrate the commitment by Eskom and the government to stabilise the liquidity position and credit matrices of the company.  Eskom will continue to implement initiatives that will ensure that the company achieves long-term financial sustainability while moving towards an improved credit profile.”

“Eskom is encouraged by the affirmations and believe that this action will bolster our endeavours to execute our funding plan for the completion of the current build programme, enabling us to stabilise the power system and ensure continued electricity supply,” added   Eskom’s Group Chief Executive, Brian Molefe.

Issued by Eskom