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Eskom says municipal debt is blocking credit upgrades
The Mercury
|November 20, 2025
Parastatal is owed at least R105 billion in municipal arrear debt as at the end of September
AT THE END of September, Eskom was owed at least R105 billion in municipal arrear despite the National Treasury's intervention for municipal debt elimination, as this contributes to the power utility's weak balance sheet.
(SUPPLIED)
ESKOM has warned that rising municipal debt remains a major stumbling block to improving its credit ratings, delaying its ability to reenter capital markets without relying on government guarantees.
At the end of September, Eskom was owed at least R105 billion in municipal arrear debt despite the National Treasury's intervention for municipal debt elimination, as this contributes to the power utility’s weak balance sheet.
Briefing Parliament on its first-quarter performance for 2025/26 on Wednesday, the State-owned utility currently rated sub-investment grade by Fitch and Moody’s said ratings agencies remain unconvinced that Eskom is making meaningful progress in resolving municipal arrears.
Eskom chief financial officer, Calib Cassim, said the agencies consistently cite municipal debt as a key risk to the utility’s financial stability.
This story is from the November 20, 2025 edition of The Mercury.
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