South African utility ESKOM expects in the next few weeks the execution of government guarantees. The local currency corporate credit rating remains on CreditWatch with developing implications because it could be affirmed, raised, or lowered under our revised criteria for government-related entities. The foreign currency corporate credit rating remains on CreditWatch with negative implications because it is capped by the foreign currency rating on the Republic of South Africa. The CreditWatch placement reflects the largely debt-funded capital expenditure program and the uncertainty regarding the execution of the government guarantees. On July 7, 2009, Standard&Poor's Ratings Services said it kept on CreditWatch with developing implications its 'A-' local currency corporate credit rating (CCR) and issue ratings and its 'zaAA+'
