The American credit rating agency Fitch Ratings’ decision to maintain Eskom’s stable outlook rating of “B” has been welcomed by Eskom.
According to the electricity provider, the rating is evidence of its efforts to stabilize the company’s financial situation.
“The latest decision by the rating agency is an encouragement in the cooperative and ongoing efforts to restore Eskom’s financial stability, improve performance and ensure its long-term sustainability,” Eskom said.
The power utility made sense of that government’s decision to give Eskom with debt relief over the course of the following three years demonstrated critical.
The power utility was given permission to stabilize its balance sheet, perform urgently required power station maintenance, restructure, and invest.
“Central to the rating agency’s decision is Eskom’s link to the South African government as a state-owned enterprise. The decision also comes on the back of the debt relief package for Eskom as announced by the Minister of Finance in February this year.
“As stated in the Eskom Debt Relief Bill, government will, over the next three years, provide Eskom with debt relief of R254 billion.
“This will be in the form of advances of R78 billion in 2023/24 financial year, R66 billion in 2024/25 financial year and R40 billion in 2025/26 financial year as well as a takeover of up to R70 billion of Eskom’s loan portfolio in 2025/26 financial year,” Eskom said.
CENTRAL NEWS
—————————————————————
DO YOU HAVE A NEWS STORY OR AN OPINION FOR CENTRAL NEWS: E-mail us : newsroom@centralnews.co.za or Whatsapp us on 0814955487