Standard & Poor’s has announced its decision to revise their outlook on Eskom from negative to stable.
The decision was made after Eskom went through the proces of being broken into three entities.
Eskom has secured 95% of its $5 billion (R72 billion) funding requirement for the fiscal year 18/19 and 35% of the company’s indicative $3 billion (R48 billion) funding requirement for the fiscal year 19/20.
The company remains cautiously optimistic that they will secure the full funding requirement for this year due to improved market sentiment on Eskom.
Eskom’s Chief Financial Officer, Calib Cassim said: ‘We are encouraged by the rating agency’s decision to positively revise their outlook on Eskom and affirm the credit ratings. We view this decision as a positive reinforcement of the strides that we have made to improve Eskom’s liquidity position. The moderately improved liquidity will allow us the flexibility to focus on continuing to secure the funding required for the fiscal year 19/20 and stabilise Eskom’s security of supply’.