South Africa: Eskom Celebrates Upgrade By S&P Global From B To B+

South Africa’s power utility, Eskom, is celebrating a ratings upgrade by S&P Global Ratings, which has moved its foreign and local currency long-term credit ratings from B to B+, with a stable outlook.

The upgrade also applies to Eskom’s senior secured and unsecured debt, while government-guaranteed foreign currency debt has been raised from BB- to BB+. Eskom’s national scale rating improved to zaA/zaA-1.

Reacting to the announcement, Eskom’s Group Chief Executive Officer, Mr. Dan Marokane, said the company’s Turnaround Plan has been crucial in shifting Eskom from a generation crisis to a phase of operational reliability and disciplined management.

He added that while the company continues to prioritise affordable and secure electricity, it also aims to support South Africa’s transition to lower-carbon energy sources.

The upgrade reflects the measurable progress of Eskom’s Turnaround Plan, which has stabilised electricity generation, strengthened financial performance, and improved governance.

Eskom reported delivering electricity 97.9% of the time in the current financial year, up from 96% the previous year.

For the first time in eight years, Eskom posted a profit in FY2025, marking a major milestone in its financial recovery.

Eskom says it will maintain its momentum through ongoing generation recovery initiatives, strengthened governance, and long-term sustainability efforts to support both national and regional energy security.

“Our focus remains on providing affordable, secure electricity for South Africa while driving the transition to lower-carbon energy,” said Eskom CEO Dan Marokane.

S&P Global’s origins date back to 1860, when Henry Varnum Poor published financial information on U.S. railroads. Today, the company provides financial data and ratings through divisions such as S&P Global Ratings, S&P Dow Jones Indices, and S&P Global Market Intelligence.

S&P Global Ratings specifically offers independent credit ratings, research, and data, while the company’s broader mission is to provide “essential intelligence” to investors and markets.