‘The City is pleased that its stable outlook has been affirmed. Good rating opinions are crucial for financial planning. The better the rating, the potentially lower the interest charged on debt, which means it costs less to service debt and saves public money. Good ratings are also very important for the City’s medium-term plans, which include an ambitious infrastructure investment portfolio of R120 billion over the next 10 years. We aim to continue investing in basic services while boosting job-creating economic growth and sustainability, as we build towards our long-term vision of a city of hope for all.
‘The City thanks its ratepayers and customers for their trust and support in helping to keep the metro financially stable. This ensures that we can continue to deliver services to all,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
Moody’s says it is satisfied with the City’s adequate liquidity reserves. ‘Moody’s notes a track record of improved management policies and practices, which should help the City to maintain sound financial metrics despite upcoming infrastructure spending over the medium-term.’
Moody’s assessment
Moody’s has affirmed the City’s Baseline Credit Assessment (BCA) of Ba3 and long-term global scale and national scale (LTGSR and LTNSR) issuer and debt ratings of Ba3 and Aa3.za, respectively; affirmed its short-term global scale issuer rating (STGSR) of NP and short-term national scale issuer rating (STNSR) of P-1.za; and maintained the City’s stable outlook.
