Fitch Ratings has revised Eskom’s standalone credit profile from ccc- to ccc+, citing improved operational performance and a forecast increase in earnings through to 2029. The utility’s long-term local currency issuer default rating (IDR) has been affirmed at B with a stable outlook.
The revision signals external recognition of Eskom’s internal improvements, particularly in generation performance and cost management. Fitch does not provide specific metrics but the upgrade suggests better unit performance and reduced unplanned breakdowns.
Fitch also cites a “material increase in earnings before interest, taxes, depreciation and amortisation” expected from Eskom’s financial years 2025 to 2029. This points to stronger cash generation from core operations, which may allow Eskom to better fund routine maintenance and procurement without relying entirely on government support.
“The affirmation and positive revision on our credit rating profile by Fitch reinforces our determination to continue our efforts to turn around Eskom’s financial and operational performance,” said Dan Marokane, Eskom’s Group Chief Executive. “Our aim remains to ultimately reduce Eskom’s reliance on government support by driving the company towards financial sustainability.”
Fitch also affirmed Eskom’s senior unsecured debt rating at B, with a recovery rating of RR4, and its senior unsecured guaranteed debt at BB-. The IDR reflects continued strong linkages between Eskom and the South African government, consistent with Fitch’s government-related entities rating criteria.
