S&P raises Exxaro’s rating based on continuing stable performances

Global ratings agency S&P has raised South Africa-based coal miner Exxaro Resources’ national scale ratings to ‘zaA/zaA-1’, from ‘zaA-/zaA-2’, based on the miner continuing to deliver stable operational and financial performances. However, while the miner has maintained its earnings before interest, taxes, depreciation and amortisation (Ebitda) to 1.3x, S&P remains concerned about lingering risks of payment delays or nonpayment from State-owned power utility Eskom, which remains Exxaro’s largest customer and represents more than 60% of its revenue.