On June 19, 2008, Standard&Poor's Ratings Services kept its 'A-' local currency and 'BBB+' foreign currency long-term corporate credit ratings on South Africa-based utility ESKOM Holdings Ltd. on CreditWatch with negative implications. The ratings were placed on CreditWatch on Jan. 11, 2008, following the announcement of a material increase in ESKOM's capital expenditure program, in light of the tightening capacity margin in South Africa, and due to significant inflationary pressures, primarily on fuel prices and capital equipment. Yesterday's announcement by the National Energy Regulator of South Africa (NERSA), that it would allow ESKOM to increase the average tariff in 2008/2009 to 27.5% (nominal) from 14.2%, with expectations of annual increases of 20%-30% over the following three years (2009/2010
