State-owned utility Eskom has welcomed S&P Global Ratings’ decision to upgrade the company’s 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 was raised from BB- to BB+. Eskom’s national scale rating improved from zaBBB+/zaA-2 to zaAV/zaA-1.

Eskom’s upgrade to B+ from B for long-term debt signals a modest improvement in its ability to meet obligations, indicating slightly stronger credit quality within the speculative-grade category.

On the national scale, the shift from zaBBB+/zaA‑2 to zaAV/zaA‑1 places Eskom among the strongest of South African issuers, showing it is highly reliable in meeting both long- and short-term domestic obligations.

While still below global investment grade, Eskom said on November 25 that the upgraded ratings reflected the measurable impact of its turnaround plan, which has stabilised generation, improved financial performance and strengthened governance.

Citing operational improvements, Eskom said it had managed to deliver electricity 97.9% of the time thus far in the current financial year, compared with 96% in the 2025 financial year.

The utility also said it had improved its financial performance, showing profitability for the first time in eight years in the 2025 financial year.

“The turnaround plan has been pivotal in restoring Eskom’s operational and financial stability. We have moved decisively from a generation crisis to a phase of reliability and disciplined management. Our focus remains on providing affordable, secure electricity for South Africa while driving the transition to lower-carbon energy,” Eskom CEO Dan Marokane said.

He pledged that Eskom would continue to implement its generation recovery initiatives, enhance governance, combat crime and corruption, prepare the organisation for long-term sustainability and energy security and support South Africa’s growth and the broader sub-Saharan Africa region.