Fitch also affirmed Eskom’s senior unsecured debt.
Global ratings agency Fitch has affirmed Eskom’s Long-Term Local Currency Issuer Default Rating at ‘B’ with a stable outlook, reinforcing confidence in the utility’s ongoing operational and financial recovery.
Fitch also affirmed Eskom’s senior unsecured debt at ‘B’ with a Recovery Rating of ‘RR4’, and its senior unsecured guaranteed debt at ‘BB-, while it maintained the utility’s Standalone Credit Profile at ‘ccc+’.
Affirmation
The global ratings agency said the affirmation reflects the strong links between Eskom and South Africa’s ‘BB- ‘Outlook Stable, under Fitch’s latest Government-Related Entities rating criteria.
In its detailed update report, Fitch noted Eskom’s operations are improving and the delivery of its business plan may lead to funding on an unguaranteed basis over the medium term.
Turnaround plan
Eskom Group Chief Executive, Dan Marokane, has welcomed Fitch’s affirmation.
“We remain singularly focused on delivering the turnaround plan that is central to continuing to restore Eskom’s operational and financial stability.
“Reaching the milestone of one year without load shedding on Saturday, 16 May advances this stability, as well as the South African and Sub-Saharan Africa economy, competition and the integration of renewable energy,” said Marokane.
Victory
Eskom has delivered South Africa’s hardest‑won victory in recent memory, 365 consecutive days without a single second of load shedding, marking a historic turnaround from crisis to stability and restoring national confidence in the power grid.
Load shedding has been more than an inconvenience; it has rippled through businesses, stolen hours from households, eroded public trust, and dimmed South Africa’s economic potential with every blackout.
Milestone
Eskom spokesperson Daphne Mokwena said the milestone marks a decisive turning point from a recovering grid to a stable, high‑performing power system, restoring national confidence and saving R26.9 billion in diesel costs over three years.
“While the legacy of load shedding once constrained economic activity and strained South African households, 365 consecutive days of uninterrupted power supply represent more than operational progress; it is a restoration of national confidence.”
Profit
In September 2025, 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 pre-tax profit of R23.9 billion for the year ended March 2025, 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 increases in electricity tariffs and lower primary energy costs.
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