People can have skills (most commonly) or capabilities. It doesn't have to be positive with either word.
He has no skill as a fisherman even though he's been doing it for years.
It would be generous to call my capabilities in German rudimentary.
Skill is typically something more personal.
Everybody admires her skill as a cook. (capability would be ok, but not as good)
I have the capability to drive myself and six passengers to the picnic. (not skill)
Organizations, associations, machines etc. would have capabilities.
The firm has the capability to begin production 6 months after the contract is signed.
This app has the capability to translate Mandarin into English.