Eskom earns credit rating downgrade from Standard & Poor’s

Eskom says following the local and foreign currency downgrade of theSovereign to BBB-, on 13 June 2014, credit rating agency Standard &Poor’s (S&P) has downgraded the long-term local and foreign currencyrating of state utility company to BBB- from BBB. The agency has also
placed Eskom on CreditWatch with potential negative implications.

The South Africa’s power utility said the downgrade is in line withthe ratings criteria of a state-owned company however the CreditWatchis specific to resolution of Eskom’s capital structure.

“Eskom notes the ratings action by S&P and we are certainly concernedabout the CreditWatch which has negative implications. We areconfident that a solution will be forthcoming,” said TsholofeloMolefe, Eskom Finance Director.

“We are currently engaging Government to address Eskom’s capitalstructure. Eskom remains integral to the South African economy and itcontinues to rely on a stable financial profile and Government supportto execute its infrastructure investment programme”, Ms Molefe
concluded.