Fitch affirms Eskom

Fitch Ratings said it affirmed Eskom Holding Ltd.'s long-term local-currency issuer default rating at A, national long-term rating at AAA(zaf) and national short-term rating at F1+(zaf).

The outlook on the long-term issuer default rating is negative. The outlook on the national long-term rating was revised to stable from negative, in line with the Republic of South Africa's ratings (long-term local-currency issuer default rating A and foreign-currency issuer default rating BBB+, both with a negative outlook).

"State support reflects Eskom's importance to the country's energy needs. Explicit financial support is evident in the form of a flexible dividend policy, the approval in 2008 of a ZAR 60 billion subordinated loan and the government's recent decision to guarantee up to ZAR 176 billion of Eskom's existing and future debt," Erwin van Lumich, a deputy head at Fitch, said in a statement.

Eskom's standalone credit profile is non-investment grade on the international rating scale as pressure on its credit ratios is expected to intensify from the company's ZAR 385 billion five-year investment plan, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.