Dominant position in the South African electricity market Increasingly transparent tariff regime following the introduction of multiyear price reviews Direct and indirect financial support from the government during the build program Very substantial, largely debt-funded capital expenditure program Operational challenges associated with a tight generation capacity reserve margin Weak credit coverage measures and weak liquidity in the short term The ratings on South Africa-based electricity utility ESKOM Holdings Ltd. reflect the company's dominant position in the South African electricity market; its 100% government ownership, which is not expected to change in the near term; an increasingly supportive regulatory regime following the introduction of multiyear price reviews; and material implicit and explicit support from the Republic of South Africa during the
