Eskom has welcomed the decision by S&P Global Ratings to upgrade its foreign and local currency long-term credit ratings from B to B+, with a stable outlook, marking the utility’s most significant ratings improvement in years.
The upgrade also applies to Eskom’s senior secured and unsecured debt, while its government-guaranteed foreign currency debt rating rises from BB- to BB+. National scale ratings have improved from zaBBB+/zaA-2 to zaA/zaA-1.
According to Eskom, the decision reflects the measurable impact of its Turnaround Plan, which has focused on stabilising electricity generation, strengthening financial controls, and improving governance. The power utility reported that it delivered electricity 97.9% of the time in the current financial year, up from 96% in the previous year, indicating a notable improvement in operational reliability.
Eskom said the operational progress has been matched by stronger financial performance, including the utility’s first return to profitability in eight years during the 2025 financial year. Group Chief Executive Dan Marokane said the turnaround strategy has been crucial in moving Eskom from a period of deep crisis to one of “reliability and disciplined management.” He stressed that the company remains committed to providing affordable, secure electricity while driving South Africa’s transition to lower-carbon energy.
The utility said it will continue with its generation recovery initiatives, governance reforms, and measures to combat crime and corruption. It also plans to strengthen its long-term sustainability and energy security efforts to support South Africa’s growth and the wider sub-Saharan region.
The ratings upgrade is expected to ease borrowing conditions for Eskom and improve investor confidence, offering some relief as the company continues to navigate high levels of debt, ageing infrastructure and the long-term impacts of years of load shedding.
Earlier this month, S&P Global Ratings also raised South Africa’s long-term foreign currency sovereign credit rating to BB from BB-, and its local currency rating to BB+ from BB, with a positive outlook. The ratings agency cited the government’s expected third consecutive annual primary surplus in fiscal 2025, ending March 31, 2026, and a reduction in contingent liabilities, particularly linked to the state-owned electricity utility, Eskom.
