Research Update: Electricity Producer Eskom Outlook Revised To Stable From Negative On Anticipated Debt Transfer; Affirmed At 'CCC+'

Continued deterioration in Eskom Holdings SOC Ltd.'s operating performance, alongside a lower-than-requested tariff increase and rising costs, has further strained liquidity, and committed government support is still insufficient to cover Eskom's liquidity needs in the next 12 months, without Eskom incurring additional debt. The South African government's intention to take on between one- and two-thirds of Eskom's gross debt would improve the utility's capital structure and liquidity if the transfer is implemented successfully and in a timely manner. We revised the outlook on Eskom to stable from negative, and affirmed our 'CCC+' issuer credit rating and 'zaB' national scale ratings on Eskom, as well as our ratings on the company's debt. The stable outlook on Eskom reflects that persisting liquidity

...- Continued deterioration in Eskom Holdings SOC Ltd.'s operating performance, alongside a lower-than-requested tariff increase and rising costs, has further strained liquidity, and committed government support is still insufficient to cover Eskom's liquidity needs in the next 12 months, without Eskom incurring additional debt. - The South African government's intention to take on between one- and two-thirds of Eskom's gross debt would improve the utility's capital structure and liquidity if the transfer is implemented successfully and in a timely manner. - We revised the outlook on Eskom to stable from negative, and affirmed our '###+' issuer credit rating and 'zaB' national scale ratings on Eskom, as well as our ratings on the company's debt. - The stable outlook on Eskom reflects that persisting liquidity and operational challenges are balanced by the government's intention to provide stronger financial support over the coming years....

Research Update