S&P Global Ratings has upgraded Eskom’s credit ratings from stable to positive, marking a step in the utility’s journey towards financial recovery. The improved ratings are expected to bolster Eskom’s financial stability and enhance its operational outlook.

The ratings upgrade reflects optimism tied to the R254 billion government support package formalised in July 2023 through the Eskom Debt Relief Act.

S&P Global raised Eskom’s long-term foreign and local currency ratings to positive while the South African national scale issuer credit rating was upgraded to zaBBB+ from zaBBB. A BBB rating, as defined by S&P Global, indicates adequate capacity to meet financial commitments although the entity remains vulnerable to adverse economic conditions.

“This upgrade is a clear indicator of the progress we are making in strengthening Eskom’s financial and operational foundation. It sends a positive message to investors and stakeholders, reinforcing trust in our ability to deliver energy security while driving long-term sustainability,” said Eskom’s Group Chief Executive Dan Marokane.

Operational improvements, including a R16 billion reduction in diesel costs, are evidence of enhanced efficiency across the utility, he said.