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Media Statement
ESKOM HOLDINGS SOC LIMITED
27 June 2014
MEDIA STATEMENT
Fitch ratings revise the ratings outlook of Eskom Holdings SOC Limited to Negative from Stable
Eskom takes note of the action by Fitch Ratings (Fitch) to revise its ratings outlook of Eskom to
negative from Stable. The ratings agency has also confirmed the Long Term local currency Issuer
Default Ratings (IDR) of BBB+.
As anticipated, given the strong support from government to Eskom, this ratings action by Fitch was
as a result of the revision of the ratings Outlook on South Africa’s Long –Term IDR’s to Negative from
Stable. Fitch only formally rates the local currency and the national credit ratings of Eskom.
“Eskom’s rating is closely linked to that of Government. We continue to target the stability of
Eskom’s credit profile in order to efficiently fund the infrastructure investment programme,” said Ms
Tsholofelo Molefe, Eskom finance Director.
Standard & Poor’s downgrades credit rating of Eskom Holdings SOC Limited to BBB- with a
negative CreditWatch
Following the local and foreign currency downgrade of the Sovereign to BBB-, on 13 June 2014,
credit rating agency Standard 7 Poor’s (S&P) announced that it has downgraded the long-term local
and foreign currency rating of Eskom to BBB- from BBB. The agency has also placed Eskom on
CreditWatch with potential negative implications.
The downgrade of Eskom is in line with the ratings criteria of a state-owned company however the
CreditWatch is specific to resolution of Eskom’s capital structure.
‘Eskom notes the ratings action by S&P and we are certainly concerned about the CreditWatch
which has negative implications. We are confident that a resolution will be forthcoming,” said Ms
Tsholofelo Molefe, Eskom finance Director.
“We are currently engaging Government to address Eskom’s capital structure. Eskom remains
integral to the South African economy and it continues to rely on a stable financial profile and
Government support to execute its infrastructure investment programme”, said Ms Tsholofelo
Molefe, Eskom finance Director.
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