S&P places Eskom on CreditWatch positive on expected government support

Ratings agency S&P Global Ratings has placed its ratings on State-owned utility Eskom on CreditWatch with positive implications, including its ‘CCC+’ issuer credit rating and ‘zaB’ South Africa national scale long-term rating. S&P attributes this to the South African government’s planned R254-billion ($14-billion) debt relief agreement, which the agency expects will address Eskom’s near-term debt obligations once implemented and give the utility room to focus on operational improvements and electricity sector reform targets.