Credit ratings agency S&P Global Ratings has revised its outlook on Eskom to stable from negative, following Finance Minister Tito Mboweni’s announcement of R23-billion a year of additional funding to the debt-laden State-owned electricity utility. The ratings agency affirmed its ‘CCC+’ and ‘zaB’ sub-investment grade ratings on the company. “The stable outlook on Eskom reflects our view that the government’s commitment to providing R23-billion per annum in additional funding to Eskom has reduced the potential for funding shortfalls over the coming six months and uncertainty regarding the government’s commitment and ability to provide timely support to Eskom,” S&P Global Ratings said in a research update.
