On Jan. 11, 2008, Standard&Poor's Ratings Services 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. 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. However, Standard&Poor's current expectations are that actual capital expenditures will be materially above this figure. A financing plan for the increased capital expenditure
