On June 13, 2014, we lowered the long-term local and foreign currency ratings on the Republic of South Africa to 'BBB+' and 'BBB-', respectively. The outlook is stable. We are therefore lowering the long-term local and foreign currency ratings on ESKOM Holdings SOC Ltd., South Africa's incumbent power utility, to 'BBB-', in line with our criteria for government-related entities. At the same time, we are placing the ratings on ESKOM on CreditWatch with negative implications. The CreditWatch reflects uncertainties surrounding funding solutions for ESKOM's regulatory shortfall, escalating costs, and weak credit metrics, and that we could lower the ratings if we were to revise downward our assessment of the likelihood of extraordinary government support, or our stand-alone credit profile assessment
