LONDON (Standard&Poor's) Jan. 11, 2008--Standard&Poor's Ratings Services said today it placed its 'A-' local currency and 'BBB+' foreign currency ratings on South Africa-based utility ESKOM Holdings Ltd. on CreditWatch with negative implications. "This results from ESKOM's plans to materially increase its capital expenditure program, in light of the tightening capacity margin in South Africa, as well as significant inflationary pressures, primarily on fuel prices and capital equipment," said Standard&Poor's credit analyst Mark Davidson. "The ratings on ESKOM assume a capital expenditure program of approximately South African rand (ZAR) 150 billion in the five years to 2012, with ZAR100 billion funded by debt," Mr. Davidson added. "However, Standard&Poor's current expectations are that actual
