Global rating agency Fitch has reaffirmed Eskom’s credit ratings, maintaining the power utility’s long-term local-currency rating at ‘B’ with a stable outlook. The rating agency also affirmed Eskom’s senior unsecured debt at ‘B’ and its guaranteed debt at ‘BB-’, while maintaining the utility’s standalone credit profile at ‘ccc+’.
Fitch cited improving operations and the utility’s strong links to the South African government as key factors supporting the ratings, even as Eskom continues to navigate financial challenges. According to the Eskom website, the company is focused on improving operations, restoring financial stability, and supporting the country’s energy needs, including the integration of renewable energy.
Eskom’s Operational Milestones
Eskom Group Chief Executive Dan Marokane said reaching a full year without load shedding was an important milestone for the utility. He said the company is focused on delivering the turnaround plan that is central to continuing to restore Eskom’s operational and financial stability. Reaching the milestone of one year without load shedding on Saturday, 16 May advances this stability, as well as the South African and Sub-Saharan Africa economy, competition and the integration of renewable energy.
Some of the key achievements of Eskom include:
- Reaching 365 consecutive days without load shedding for the first time since 2018
- Improving operations and reducing the risk of power cuts
- Supporting the integration of renewable energy into the national grid
Impact on the South African Economy
The achievement marks a decisive turning point and a structural shift from a recovering grid to a stable, high-performing power system. While the legacy of load shedding once constrained economic activity and strained South African households, 365 consecutive days of uninterrupted power supply represent more than operational progress, it is a restoration of national confidence.
As reported by the South African National Treasury, the stable power supply is expected to have a positive impact on the country’s economy, including an increase in economic activity and a reduction in the risk of power cuts.
