Eskom's turnaround plan has been pivotal in restoring the utility’s operational and financial stability.
Eskom says S&P Global Ratings’ decision to upgrade the company’s foreign and local currency long-term credit rating reflects the measurable impact of its turnaround plan
S&P Global Ratings upgraded Eskom’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.
Upgrades
Eskom spokesperson Daphne Mokwena said the utility welcomes the upgrade.
“The upgrade reflects the measurable impact of Eskom’s Turnaround Plan, which has stabilised generation, improved financial performance and strengthened governance. Operational improvements have been substantial: Eskom delivered electricity 97.9% of the time in the current financial year, compared to 96% in FY2025.
“This operational stability has been matched by strong financial performance, which includes our first profitability in eight years in FY2025,” Mokwena said.
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Forging ahead
Eskom’s Group Chief Executive, Dan Marokane the turnaround plan has been pivotal in restoring the utility’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 will continue to implement its generation recovery initiatives, enhance governance, combat crime and corruption, prepare the organisation for long-term sustainability and energy security, supporting South Africa’s growth and the broader sub-Saharan region.
Profitability
In September, Eskom reported its first full-year profit in eight years, despite grappling with ballooning debts owed by several cities and municipalities across the country.
Eskom recorded a pretax profit of R23.9 billion for the year ended March 2025, which is a sharp turnaround from the R25.5 billion loss in 2024.
The state-owned entity, which marked its first return to profitability since 2017, follows the government’s R254 billion debt relief package allocated to Eskom over three years, with the current financial year, 2025, being the final one.
The outcome was underpinned by electricity tariff increases and lower primary energy costs.
Nuclear energy
This was echoed by Electricity and Energy Minister Kgosientsho Ramokgopa last week while focusing on nuclear energy.
Ramokgopa said despite losing 16 years of progress on nuclear energy, the government, in partnership with the private sector, will expedite the country’s “rightful place” in the nuclear programme.
The minister said that Eskom plans to add 5.2 gigawatts of new nuclear capacity to the national system through future nuclear builds.
Ramokgopa said this is part of a wider Integrated Resource Plan (IRP) aimed at diversifying the grid and providing stable, reliable power.
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