ESKOM HOLDINGS SOC LIMITED - Fitch Ratings Review

Fitch Ratings Review

ESKOM HOLDINGS SOC LTD

JSE CODE: BIESKM

12 April 2017


Fitch downgrades Eskom’s ratings to align to the sovereign ratings

Tuesday, 11 April 2017: Fitch Ratings has downgraded Eskom’s Long-term local currency
Issuer Default Rating (IDR) and the Senior unsecured local currency rating to ‘BB+’ from
‘BBB-’. The ratings agency 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 ‘Parent and Subsidiary Rating Linkage’ criteria;
Eskom’s rating downgrade follows the agency’s decision to downgrade South Africa’s Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BB+' from 'BBB’
announced on Friday, 07 April 2017.
Given Eskom’s significant link and support from the South African government and the
company’s high sensitivity to changes in the sovereign credit profile, Eskom’s downgrade
reflects the downgrading of South Africa’s rating.
Anoj Singh, Eskom’s Chief Financial Officer said: “We note the decision by Fitch to
downgrade Eskom’s credit ratings as largely driven by the downgrade of the sovereign credit
rating. We also note Fitch’s revision of Eskom’s outlook to ‘Stable’ from ‘Negative’ and
remain resolute in responsibly executing Eskom’s funding plan for the completion of the
current build programme and ensuring continued security of supply for the country.”




Eskom Holdings SOC Ltd enquiries
Francois Venter
011800 4050
Email: francois.venter@eskom.co.za

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