Central role in development of the South African economy. Increasingly supportive regulatory regime. Dominant position in the South African electricity market. Weak financial structure. Likelihood that ESKOM's operations will be substantially restructured. Continued development of foreign and unregulated activities. The ratings on ESKOM Holdings Ltd., the South African electricity utility, reflect its critical role in the Republic of South Africa's (local currency A-/Positive/A-2; foreign currency BBB-/Positive/A-3) national Reconstruction and Development Program through its successful electrification program. They also factor in the government's intention to remain supportive of ESKOM's credit quality, improvements in efficiency, and a more supportive regulatory regime. These strengths are offset by a relatively weak financial structure, longer-term exposure to the restructuring of the electricity industry and more
