CAPE TOWN - Fitch Ratings has affirmed Eskom's credit rating at below investment grade and also maintained outlook on the power utility at negative.

Eskom said the ratings agency held its long-term currency issuer default rating and unguaranteed local currency senior unsecured rating at BB-. 

It affirmed the government-guaranteed local currency senior unsecured debt ratings at 'BB+', in line with the country rating of South Africa.

However, it removed the rating watch negative issued in January, a step welcomed by Eksom as acknowledgment of progress in improving its liquidity health and resolving management challenges that has plagued the company.

“This reflects the improvements in investor sentiment that has allowed Eskom access to the various sources of funding that bolstered our liquidity levels," said acting chief financial officer Calib Cassim. 

"Eskom’s operational and financial sustainability are very important focus areas and this ratings action gives us confidence that we are on the right path."

- African News Agency (ANA)