ESKOM HOLDINGS SOC LIMITED - Moody's confirms Eskom's Ba1 ratings; negative outlook.

Moody's confirms Eskom's Ba1 ratings; negative outlook.

ESKOM HOLDINGS SOC LIMITED

11May 2016

Moody's confirms Eskom's Ba1 ratings; negative outlook.

Following the affirmation of the sovereign credit rating by Moody’s Investors Service (Moody’s) last
week, the ratings agency has moved to affirm Eskom’s credit rating of Ba1, with a negative outlook.

In March 2016, Moody’s had placed Eskom on review for a potential downgrade. That has now been
averted with the affirmation of the Ba1 credit rating, indicating the possibility for the Eskom’s
outlook to be revised to stable if the company continues to improve and stabilise its operational and
financial performance.

Moody’s cited Eskom's strategic importance to the government's social and economic policy, and a
prospect of a high level of government support in the event of financial distress, as a basis for its
decision to affirm Eskom’s credit rating.

To date, Eskom has received financial support from the South African Government in the form of a
R350-billion Government Guarantee Framework Agreement, R60-billion shareholder loan which was
converted into equity in 2015, and the recent R23-billion equity injection received by the company in
the 2015/16 financial year.

“We are pleased that the rating agency has affirmed Eskom’s credit rating. Removing Eskom from a
review for downgrade status demonstrate the commitment by Eskom and the government to
stabilise the company’s operational and financial profile. Eskom will continue to implement
initiatives that will ensure that the company achieves long-term financial sustainability while moving
towards an improved credit profile”, said Anoj Singh, Eskom’s Chief Financial Officer.

ENDS

Further information on the Eskom Holdings SOC Ltd bond issue can be obtained from
Francois Venter       ESKOM             (011 800-4050)

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