Ratings agency Standard & Poor’s has kept Eskom’s credit rating below sub-investment grade.

The power utility on Thursday evening issued a statement indicating that the ratings agency affirmed its foreign and local currency long-term ratings at CCC+, with a negative outlook.

A CCC rating means that the power utility is vulnerable and dependent on favourable business, financial and economic conditions to meet its financial commitments, according to a S&P’s ratings definitions.

The ratings agency also affirmed Eskom’s long and short-term national scale ratings, both at zaB.

S&P’s report comes a day after Eskom released its half-year results, which reflected a 89% decline in net profit. At a briefing on the results CEO Phakamani Hadebe said that although liquidity had improved, the state-owned company remained a “debt-driven entity” with severe financial challenges.

(Source: News24)