Fitch affirms Eskom

Fitch Ratings said it affirmed Eskom Holdings SOC Ltd.'s long-term local-currency issuer default rating at A, long-term national rating at AAA(zaf) and short-term national rating at F1+(zaf).

The outlook is stable.

The stable outlook reflects the continuing alignment of Eskom's ratings with those of its 100% shareholder, the Republic of South Africa, Fitch said.

The agency also said it believes that Eskom's financial profile will continue to improve over the coming years, boosted by higher tariffs and ongoing operational cost reductions, the agency said.

The ratings are strongly supported by both tangible and intangible government support, which reflects Eskom's strategic importance to both the country's energy needs and the broader South African economy, Fitch said.

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