State-owned electricity producer Eskom announced on Tuesday that Moody’s Investors Service (Moody’s) had affirmed the utility’s credit rating of Ba1, with a negative outlook, following an earlier affirmation of South Africa’s sovereign rating by the same agency. In March 2016, Moody’s placed Eskom on review for a potential downgrade. The downgrade, Eskom said, had been averted, with an indication from Moody’s of a possible revision in its outlook to “stable” if the company continued to improve and stabilise its operational and financial performance. “Removing Eskom from a review for downgrade status demonstrate the commitment by Eskom and the government to stabilise the company’s operational and financial profile,” CFO Anoj Singh said in a statement.
