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Ratings Review
ESKOM HOLDINGS SOC LTD
JSE CODE: BIESKM
09 December 2016
Fitch affirms Eskom at BBB-; revises outlook to negative
Thursday, 08 December 2016: Fitch Ratings has affirmed it’s ‘BBB-‘ long-
term local currency Issuer Default Rating (IDR) on Eskom and revised the
company’s outlook to negative from stable. The revision of Eskom’s outlook
reflects the change in outlook on South Africa’s long-term IDR to negative
from stable as announced by Fitch on Friday, 25 November 2016.
In their assessment, Fitch acknowledges Eskom’s continued access to funding
supported by the GFA; addition of new capacity to the grid; and improved
operational performance which resulted in an improvement of the company’s
Energy Availability Factor (EAF) as some of the elements that are yielding
positive results for Eskom’s business profile. The rating agency does
however; signal the challenges that the company may have to contend with in
the event that the GFA expires.
“Eskom welcomes Fitch’s decision to affirm our credit rating at ‘BBB-‘. We
view Fitch’s and Moody’s (published earlier this week) rating affirmations
as an indication of the positive financial and operational results achieved
by the business. We are acutely aware of the concerns raised by the rating
agency and continue to engage with the relevant stakeholders to expediently
resolve these issues”, said Anoj Singh, Chief Financial Officer.
S&P Global revise Eskom to 'BB-'
On Dec. 8, 2016, S&P Global Ratings lowered its long-term corporate credit
rating on South African utility ESKOM Holdings SOC Ltd. to 'BB-' from 'BB'.
The outlook is negative.
At the same time they also lowered the long- and short-term South Africa
national scale ratings on ESKOM to 'zaBB+/ZaB' from 'zaBBB/zaA-2'.
Eskom Holdings SOC Ltd enquiries
Francois Venter
011800 4050
Email: francois.venter@eskom.co.za
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