Credit rating agency Standard & Poor’s (S&P) has affirmed Eskom’s credit rating at BBB. However, it downgraded Eskom’s stand-alone credit profile (SACP) by one notch to ‘b-‘ from ‘b’, due to the revised business risk profile from “fair” to “weak”. This action was taken primarily in light of increased regulatory and operating risk, and weakened profitability owing to an unfavourable regulatory decision.
“Eskom’s credit rating remains investment grade; however we are disappointed by the SACP downgrade at this time as we continue to action our third multi-year price determination (MYPD3) response plan. Eskom remains committed to an investment grade credit rating with government support as it is critical to access funding needed to invest in South Africa’s electricity infrastructure,” Eskom CEO Brian Dames says.