There were signs of hope for SA’s spluttering economy yesterday with Moody’s Investors Service raising its outlook on Eskom’s debt ratings to positive for the first time since 2007 and S&P Global Ratings upgrading its long-term issuer credit rating on Sasol to BB+, one notch below investment grade.

At the same time, SA’s balance of trade figures have provided more cheer with the country recording a trade surplus above market expectations in September.

This comes days after Finance Minister Enoch Godongwana confirmed that government could take over a substantial portion of Eskom’s R400bn debt.

Moody’s boosted its Eskom outlook from negative, signalling that the next ratings action may now be an upgrade instead of another downgrade.

Fin24 reports that it affirmed the utility’s long-term corporate family rating at Caa1, seven levels below investment grade.

Eskom’s rating has been on a downward trend since 2008 and the outlook change marks a potential for a change in that course, noted Moody’s senior vice president Joanna Fic.

‘The positive outlook recognises the commitment to address Eskom’s unsustainable capital structure. A partial debt transfer to the government will improve the company’s balance sheet and reduce pressure on cash flows through lower interest payments,’ Moody’s said.

Full report on the Fin24 site