JOHANNESBURG, Nov. 27 (Xinhua) -- South Africa's national power utility Eskom said Wednesday that it welcomed the latest upgrade by Standard and Poor's (S&P) Global, which raised its long-term global-scale foreign and local currency ratings from stable to positive.
Eskom's Group Chief Executive Dan Marokane said in a statement that the upgrade reflected S&P's confidence in the impact of government bailouts to the power utility, including the 254 billion rand (about 14 billion U.S. dollars) support package signed into law in July last year.
Eskom has seen improvements in reducing rolling power cuts since the start of 2024.
"This upgrade is a clear indicator of the progress we are making in strengthening Eskom's financial and operational foundation. It sends a positive message to investors and stakeholders, reinforcing trust in our ability to deliver energy security while driving long-term sustainability," Marokane said.
S&P Global reaffirmed Eskom's "B" issue rating for its senior unsecured debt and the "BB-" foreign currency issue rating for government-guaranteed debt. Eskom's South Africa national scale issuer credit rating was upgraded to "zaBBB+" from "zaBBB," while its short-term national scale rating of "zaA-2" remained unchanged.
Marokane noted that the utility's reduced reliance on diesel was another indication that the company was improving its financial position.
"Our success in improving generation performance and achieving over 16 billion rand in diesel savings highlights the efficiency gains we are driving," he said. "Sustaining this momentum will support Eskom's path to profitability and reduce our reliance on fiscal support in the future." ■
