ESKOM HOLDINGS SOC LIMITED - Fitch Ratings Update

Fitch Ratings Update

ESKOM HOLDINGS SOC LTD

MEDIA STATEMENT

05 August 2015



Fitch recalibration of the sovereign rating methodology results in a downgrade for Eskom to ‘BBB-’
National long-term and short-term ratings affirmed; outlook is stable

Thursday, 04 August 2016: Following the change in methodology and rating criteria used by Fitch
Ratings to rate the sovereign and government entities; the rating agency has downgraded Eskom’s
Long-term local currency Issuer Default Rating (IDR) to ‘BBB-’ from ‘BBB’. Fitch Ratings has also
affirmed Eskom’s National long-term and short-term ratings at ‘AAA’ and ‘F1+’, respectively. The
outlook is stable.

In terms of Fitch’s rating methodology for Government Related Issuers, Eskom’s rating revision is
primarily driven by Fitch’s downgrade of South Africa’s Long-term local currency IDR to ‘BBB-’ from
‘BBB’; outlook is stable .This decision was as a result of Fitch’s recalibration of the sovereign rating
criteria; it is important to note that the revision of the rating was not because of any fundamental
changes on the sovereign credit.

Given Eskom’s strong link and support from the South African government and its high sensitivity to
changes in the sovereign credit profile, Eskom’s downgrade reflects the downgrading of South
Africa’s rating.

Eskom’s National long-term and short-term ratings remain unchanged.

Anoj Singh, Eskom Chief Financial Officer said: “We note the decision by Fitch to downgrade Eskom
on the back of the Sovereign downgrade; in the interests of the economy we will continue to focus
on stabilizing the security of supply without compromising Eskom’s financial sustainability.”



Eskom Holdings SOC Ltd

Francois Venter

011800 5474

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