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S&P Global Ratings has put Eskom's debt assessment on positive watch, meaning it may upgrade South Africa’s state-owned power utility.
The move follows the announcement last month that Eskom will receive R254 billion in debt relief from the government, the ratings company said in a statement on Tuesday.
S&P expects the move "will address Eskom’s near-term debt obligations once implemented and give Eskom room to focus on operational improvements and electricity-sector reform targets."
S&P could raise Eskom’s CCC+ rating by one or more notches based on the expectation that the utility’s liquidity position will strengthen and that the risks of a near-term default event will reduce once the debt relief agreement is implemented.
Moody’s Investors Service raised its outlook on Eskom ratings to positive for the first time in 15 years after Finance Minister Enoch Godongwana said in October that the government would take over some of the company’s debt.
