LONDON (Standard&Poor's CreditWire) Oct. 14, 1999--Standard&Poor's today assigned its double-'B'-plus long-term foreign currency rating to the euro (Eur) 200 million 7% senior secured bonds due October 2002 issued by ESKOM (local currency triple-'B'-plus/Stable/--; foreign currency double-'B'-plus/Stable/--). The ratings on ESKOM reflect its strategic importance as the Republic of South Africa's primary generator and transmitter of electricity, together with its low tariffs, good plant and management operations, limited near-term capital needs, and a supportive regulatory environment. Risks reflected in the ratings include ESKOM's reliance on large customers in cyclical mining and basic metals businesses, an ambitious electrification program, a declining--but still substantial--debt burden, and uncertainty resulting from the planned restructuring of the South African electricity distribution sector.
