Dominant position in the South African electricity market. Central role in development of the South African economy. Increasingly transparent regulatory regime. Strong electricity demand growth. Weak financial structure. Likelihood that operations will be substantially restructured. Narrowing generating capacity margin. Substantial generation construction program. The ratings on ESKOM Holdings Ltd. (ESKOM), the South African electricity utility, reflect its critical role in the development of the Republic of South Africa's economy through its successful electrification program. They also factor in the government's intention to remain supportive of ESKOM's credit quality, strong electricity demand growth, and supportive regulatory regime. Standard&Poor's Ratings Services evaluates ESKOM as a government-owned institution supported by public policy. Modest government support provides a moderate enhancement to the
