Media statement 11 April 2024
Cllr Jacqui Uys
MMC for Finance
The City of Tshwane welcomes the decision by Moody’s Ratings to retain our ratings status and upgrade our outlook from negative to stable. This follows a notice to review our rating and possibly put the City on a further downgrade in March 2024.
Today, Moody’s has confirmed the City’s Caa2 long-term issuer rating and its caa2 BCA and its Caa1.za NSR long-term issuer rating. This is a positive development that will assist the City as we work to stabilise our finances.
Furthermore, the City is working to rebuild its tax administration to achieve further upgrades, which will enable us to borrow capital funding for infrastructure projects.
Moody’s ascribes the City’s stable outlook rating as a reflection of the City’s decreased risk of debt acceleration. The rating also follows our submission of our audited financial statements to the Johannesburg Stock Exchange. This was further supported by a SENS statement that was issued to the market.
The stable outlook rating together with the improved 2023 audit report is a progressive step in the right direction for the City and serves as evidence that our turnaround plans are starting to bear results.
Also worth noting is that auditors have found that we have a credible set of financial statements that will allow creditors to make predictions for the future. We believe this is the foundation for potentially improving our credit ratings so that we can access finance at competitive rates to develop infrastructure.
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Cllr Jacqui Uys