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Eskom Receives Ratings Upgrade from Moody's, Bolstering Prospects

Published September 21, 2023
9 months ago

In a significant boost to South African power utility, Eskom, the global financial research firm, Moody's Investors Service, has upgraded the organisation's credit rating. The enhancement from positive to stable reflects the positive impact of the Debt Relief Act, which was passed in July.

This welcomed boost comes at a critical time for Eskom. The Debt Relief Act enables the government to provide Eskom with R254 billion in debt relief over the next three years. This financial assistance will directly aid Eskom's long-term sustainability plans while also undergirding necessary maintenance of its generation fleet.

Eskom has already benefitted from the first instalment of R16 billion during the current financial year. This critical support brings marked financial relief, enabling strategic planning for necessary maintenance and upgrades.

Eskom's Daphne Mokwena expressed optimism on the development, stating, "The decision by Moody's Investors Service is a reassurance of our ongoing efforts to turn Eskom around." As the summer period starts, Eskom has elevated its maintenance to an average of 5844 megawatts, signaling a positive step towards the organization's resiliency and continued operational success.

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