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S&P puts Eskom on positive credit watch
Eskom says the outlook will also reassure its lenders and creditors that it is financially stable and can meet its debt obligations.
JOHANNESBURG - Global rating agency Standard and Poor's placed Eskom on credit watch positive.
This after the debt relief announced by National Treasury improves the utility's financial position and overall liquidity.
The decision by S&P is an indication to the market that the agency could improve Eskom’s CCC+ credit rating by one or more notches based on expectations that Eskom’s liquidity position will be strengthened by the relief.
Eskom says the outlook will also reassure its lenders and creditors that it is financially stable and can meet its debt obligations.
The potential rating upgrade is expected to take place once the Debt Relief Bill has been approved and signed by Parliament, and also once the final terms and conditions of the debt relief have been provided by Treasury.