{"id":12187,"date":"2012-07-07T00:16:21","date_gmt":"2012-07-06T22:16:21","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/text-fitch-affirms-eskom-holdings-soc-ltd\/"},"modified":"2012-07-07T00:16:21","modified_gmt":"2012-07-06T22:16:21","slug":"text-fitch-affirms-eskom-holdings-soc-ltd","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/text-fitch-affirms-eskom-holdings-soc-ltd\/","title":{"rendered":"TEXT-Fitch affirms Eskom Holdings SOC Ltd"},"content":{"rendered":"

\t\t<\/span><\/p>\n

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July 6 – Fitch Ratings has affirmed Eskom Holdings SOC Ltd’s (Eskom)
\nLong-term local currency Issuer Default Rating (IDR) at ‘A’, its Long-term
\nNational rating at ‘AAA(zaf)’ and Short-term National rating at ‘F1+(zaf)’. The
\nOutlook on the local currency IDR is Negative, while the Outlook on the National
\nLong-term Rating is Stable. <\/p>\n

The Negative Outlook on the IDR reflects Fitch’s alignment of Eskom’s ratings
\nwith those of its 100% shareholder, the Republic of South Africa (Long-term
\nlocal currency IDR ‘A’ and Foreign Currency IDR ‘BBB+, both with Negative
\nOutlooks) in accordance with Fitch’s ‘Parent and Subsidiary Rating Linkage’
\ncriteria. Fitch considers the continued levels of explicit and implicit
\ngovernment support received over FY09 to FY12, in line with the agency’s
\nexpectations, and notes that further support is expected, should the need arise
\nin future. <\/p>\n

South Africa’s electricity tariffs are expected to continue tracking towards
\ncost reflectivity over the next five years, despite the last year of the second
\nmulti-year price determination (MYPD2) increase having been reduced to 16% from
\n25% in 2012. Eskom’s ratings are strongly supported by both tangible and
\nintangible government support, which reflects Eskom’s strategic importance to
\nboth the country’s energy needs and the broader South African economy. <\/p>\n

Eskom’s financial profile is expected to continue to gradually improve over the
\nmedium to long-term, and revenue and cash generation is expected to be boosted
\nby higher tariffs and ongoing operational cost reductions. In addition, greater
\ntransparency from regulators and the government should support the normalisation
\nof the stand-alone profile at levels commensurate with an international
\ninvestment-grade rating over the medium term. <\/p>\n

At end-March 2012 (FYE12), Eskom’s revenues increased 25.5% to ZAR114,760m, from
\nZAR91.4bn in FY11. The increase was driven primarily by higher electricity
\ntariffs, while the EBITDA margin remained reasonably stable at around 30%,
\nreflecting a sharp rise in primary fuel costs (notably related to coal). Eskom
\nis also in the process of rolling out its vast debt-funded capital expenditure
\nprogramme and has secured the funding of over 77% of the required debt to meet
\nits committed investment obligations to 2017. <\/p>\n

Any sovereign rating action would result in the same rating action on Eskom,
\nprovided that all support-driven factors remain unchanged. <\/p>\n

Eskom is the monopoly electricity generation and transmission company in South
\nAfrica, responsible for providing over 95% of South Africa’s electricity needs,
\nand generates over 80% of the South African Power Pool’s (SAPP) total
\nelectricity generation supply.<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

July 6 – Fitch Ratings has affirmed Eskom Holdings SOC Ltd’s (Eskom) Long-term local currency Issuer Default Rating (IDR) at ‘A’, its Long-term National rating at ‘AAA(zaf)’ and Short-term National rating at ‘F1+(zaf)’. The Outlook on the local currency IDR is Negative, while the Outlook on the National Long-term Rating is Stable. The Negative Outlook […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-12187","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12187"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12187\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}