PORT ELIZABETH - Fitch Ratings has announced its decision to affirm Eskom long-term local currency issuer default rating (IDR) of 'BB-', with a negative outlook, Eskom said in a statement on Monday.
Fitch has simultaneously maintained the national long-term rating at 'A(zaf)' and the national short-term rating at ‘F1(zaf)', the statement said.
The rating agency has also affirmed the government-guaranteed local currency senior unsecured debt ratings at 'BB+', in line with the rating of South Africa (BB+/Stable Outlook).
In their ratings publication, Fitch acknowledges that while Eskom is still faced with financial and operational challenges; the rating agency views the explicit government support for the company as positive and a mitigant to Eskom’s liquidity challenges, Eskom said.
Eskom’s Acting Group Chief Executive, Jabu Mabuza said: “We continue to engage with our shareholder ministries on feasible options to transition Eskom to financial sustainability.