Eskom has been given a revised rating by Standard & Poor’s following a cash injection of R23 billion by the government. File picture: Reuters/Mike Hutchings

Johannesburg - Eskom has been given a revised rating by Standard & Poor’s following a cash injection of R23 billion by the government.

S&P, the rating agency, on Friday revised Eskom’s rating from negative to stable as the power utility tries to get back on its feet with mounting debt and power outages.

Chief Financial Officer at Eskom Calib Cassim said they welcomed the latest rating by S&P.

“We are encouraged by the rating agency’s decision to positively revise their outlook on Eskom and affirm the credit ratings,” said Cassim.

He said Eskom’s liquidity position was improving.

In his budget speech in Parliament two weeks ago Finance Minister Tito Mboweni said they were helping Eskom to get its house in order.

However, he said the money given to Eskom will come with strict conditions. 

This was not limited to Eskom, but to all State-Owned Entities who receive guarantees from the government.

Mboweni said the government will appoint a chief reorganisation officer to an SOE given a guarantee to oversee the financial framework of the entity. 

The state has extended more than R500bn in guarantees to SOEs in the past few years with most of the guarantees with Eskom.

The National Treasury and other institutions had identified Eskom as a financial risk.

Political Bureau