Fitch maintains Eskom's rating

Fitch said it would maintain Eskom’s Long-Term Local Currency IDR and unguaranteed local currency senior unsecured ratings of ‘BB-’.

FILE: Eskom's Megawatt Park offices in Sunninghill. Picture: EWN.

JOHANNESBURG - Ratings agency Fitch maintained South Africa’s state-owned utility Eskom’s credit rating at below investment grade on Wednesday.

Fitch said it would maintain Eskom’s Long-Term Local Currency Issuer Default Rating (IDR) and unguaranteed local currency senior unsecured ratings of ‘BB-’, leaving it at speculative grade.

The rating agency also affirmed the government-guaranteed local currency senior unsecured debt ratings at ‘BB+’, in line with the rating of South Africa.

“The rating agency is cognisant of the positive measures that have been implemented by the new Board and management to turn the company around in their short tenure at Eskom,” Fitch said in a statement.

In January a new board was named at the power utility, which had been in a leadership crisis after several board members, including the chairman and chief executive, resigned in 2017 amid growing concerns about governance at the country’s sole electricity provider.