ESKOM HOLDINGS SOC LIMITED - Eskom Fitch Rating Announcement.

Eskom Fitch Rating Announcement.

Eskom Holdings SOC Limited
MEDIA STATEMENT
JSE Code: BIESKM


Fitch Ratings affirms Eskom’s 'BB-' credit rating and removes the ratings watch
negative

Thursday, 25 October 2018: Fitch Ratings has announced its decision to affirm Eskom
Long-Term Local Currency Issuer Default Rating (IDR) and unguaranteed local currency
senior unsecured ratings of 'BB-'. Fitch has simultaneously maintained the National Long-
Term Rating at 'A(zaf)' and the National Short-Term Rating at ‘F1(zaf)'. The rating agency
has also affirmed the government-guaranteed local currency senior unsecured debt
ratings at 'BB+', in line with the rating of South Africa (BB+/Stable Outlook). The credit
rating agency has also resolved to remove the Rating Watch Negative (RWN) instituted by
Fitch in January 2018. Outlook on Eskom remains negative.

The decision to affirm the rating and remove the RWN on Eskom is positive indication of
the ratings agency’s view that Eskom has made significant progress towards improving the
company’s liquidity health and resolving corporate governance challenges that plagued
the company.

At end September 2018, Eskom had successfully signed and secured approximately 72%
of the FY18/19 R72 billion funding requirement from various sources of funding including
both local and international financial markets. Eskom is fairly confident that it will
successfully execute the remaining funding requirement through various sources including
committed Development Finance Institutions (DFIs), local debt capital markets, Export
Credit Agencies (ECAs) and other innovative funding structures.

Eskom’s Group Chief Executive, Phakamani Hadebe said: “the ratings action is an
affirmation of extensive measures that have been implemented by the company’s
leadership in transitioning Eskom from business as usual towards sustainability. This
reflects the start in our journey towards restoring financial health, however the road ahead
will be tough. Eskom remains a vital contributor to ensuring that South Africa’s economic
growth targets are achieved and ensuring security of supply remains one of our key
priorities”.

“This reflects the improvements in investor sentiment that has allowed Eskom access to
the various sources of funding that bolstered our liquidity levels. We also have a sense of
direction in terms of our tariff path owing to Nersa’s announcements on the RCA
applications. Eskom’s operational and financial sustainability are very important focus
areas and this ratings action gives us confidence that we are on the right path”, said Calib
Cassim, Acting Chief Financial Officer at Eskom.
ENDS



Issued by: Eskom Media Desk
Tel:       +27 11 800 3304/3343/3378
Cell:      +27 82 805 7278
Fax:       086 664 7699
Email:     mediadesk@eskom.co.za

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