South Africa's dominant electric utility. Regulated revenues across the electricity value chain. Execution risk on very large capital expenditure (capex) program. Recent negative regulatory intervention in tariff setting. Elevated operational risk due to tight electricity reserve margin in South Africa. High leverage due to largely debt-funded capex program. Ratios likely to remain weak due to challenging regulatory determination for 2013/2014—2017/2018. Substantial funding requirements from 2015/2016 onward. The negative outlook on ESKOM Holdings SOC Ltd. reflects that on the Republic of South Africa. We could lower the ratings on ESKOM if any of the following were to occur: A downward revision of the stand-alone credit profile (SACP). Assuming no change in our assessment of the likelihood of extraordinary support, and no
