Eskom has welcomed its placement on CreditWatch Positive by rating agency S&P Global as a positive development, which endorses the positive impact of the Debt Relief on Eskom\u2019s financial position and overall liquidity.<\/p>\n
The placement comes after the announcement by the National Treasury of debt relief measures for Eskom in February.<\/p>\n
Eskom said this is an indication to the market that the agency could improve Eskom\u2019s CCC+ credit rating by one or more notches, based on their expectation that Eskom\u2019s liquidity position will be strengthened by the debt relief.<\/p>\n
\u201cThe announcement by S&P Global is extremely positive in that it endorses the positive impact of the Debt Relief on Eskom\u2019s financial position and overall liquidity. It will also serve to allay fears lenders and creditors of Eskom might have with respect to Eskom\u2019s financial stability,\u201d Eskom Acting Group Chief Executive Calib Cassim said on Thursday.<\/p>\n
The potential rating upgrade is expected to take place once the Debt Relief Bill has been approved and signed by Parliament and once the final terms and conditions of the debt relief have been provided by National Treasury.<\/p>\n
In the 2023 Budget Review, National Treasury announced debt relief of R254 billion for Eskom.<\/p>\n
This comprises advances to deal with Eskom\u2019s debt service requirements over the next three financial years. The National Treasury also committed to taking over up to R70 billion in Eskom debt in the 2026 financial year.<\/p>\n
The Debt Relief will reduce Eskom\u2019s debt by as much as R168 billion, while at the same time alleviating pressure on Eskom\u2019s operating cash flow, enabling expenditure on much needed capital to restore the energy availability of Eskom\u2019s fleet of power stations and to invest in strengthening and expansion of the networks. <\/p>\n<\/p>\n
Source: South African Government News Agency<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
Eskom has welcomed its placement on CreditWatch Positive by rating agency S&P Global as a positive development, which endorses the positive impact of the Debt Relief on Eskom\u2019s financial position and overall liquidity.The placement comes after the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"yoast_head":"\n