Eskom has welcomed the upgrade by Fitch Ratings of the utility’s National Long-Term Ratings including the affirmation of the stable outlook. Fitch states that the “upgrades reflect a recalibration of the higher end of the South African National Rating scale.”
Fitch further cites that Eskom’s ratings continue to reflect the strong government support including the direct government guarantees; in 2011 the South African government increased guarantees awarded to Eskom from R176 billion to R350 billion of which R138 billion has been utilised.
Brian Dames, Eskom CEO says, “The positive rating action is very helpful at this critical time as Eskom continues to execute the current build programme. A positive rating adjustment will assist Eskom in accessing funding in capital markets and it will improve investor confidence.”