We consider that ESKOM's liquidity headroom has deteriorated due to project delays and higher costs, so we've reassessed the company's liquidity to less than adequate from adequate. Our current view of ESKOM's liquidity does not affect our 'b-' assessment of the company's stand-alone credit profile (SACP). We continue to assume there is an extremely high likelihood that ESKOM would receive extraordinary state support if needed, which currently leads us to add six notches of uplift to the SACP. We are affirming our 'BBB-' long-term corporate credit ratings, and our 'zaAA-/zaA-1' national scale ratings on ESKOM. The negative outlook reflects our opinion that there is important execution risk associated with the government's support plan, and that ESKOM's operating performance has not
