On Nov. 12, 2002, Standard&Poor's Ratings Services revised its outlook on the foreign currency ratings on South African electricity utility ESKOM Holdings Ltd. (ESKOM), following a similar outlook revision on the Republic of South Africa (local currency A-/Positive/A-2; foreign currency BBB-/Positive/A-3). At the same time, Standard&Poor's affirmed its long-term 'BBB-' foreign currency ratings on ESKOM. The ratings on ESKOM reflect: Its critical role in South Africa's national Reconstruction and Development Program (RDP) through its successful electrification program; government support as demonstrated by recent above-inflation tariff increases; efficiency improvements; and a supportive regulatory regime. These strengths are offset by a relatively weak financial structure, long-term exposure to the restructuring of the electricity industry, and aggressive development of
