On Dec. 2, 2016, we lowered our local currency rating on the Republic of South Africa to 'BBB' and assigned a negative outlook to the rating. We believe this also means a weakening ability of the government to support the 100% government-owned South African power utility ESKOM Holding SOC Ltd. We are therefore lowering our long-term ratings on ESKOM to 'BB-' from 'BB'. We have also lowered our long- and short-term national scale ratings on ESKOM to 'zaBB+/zaB' from 'zaBBB/zaA-2'. The outlook on ESKOM is negative, reflecting that on the sovereign rating, as well as uncertainty regarding the government's clear commitment and ability to provide timely support to compensate for any shortfall in ESKOM's funding during the fiscal year ending
