Media statement 25 November 2024
Cllr Eugene Modise
MMC for Finance
The City of Tshwane welcomes the decision by Moody’s Ratings to retain our ratings status and maintain our stable outlook.
Moody’s confirmed the City’s Caa2 long-term issuer rating, its caa2 BCA and its Caa1.za NSR long-term issuer rating. Moody’s has indicated that the City has shown some resilience and effective financial strategies, which resulted in a stable debt burden ratio, operating margin and liquidity.
This is a positive development that will assist the City as we work to stabilise our finances. While challenges persist, the stable outlook reflects the broad stability of the liquidity coverage, which is unlikely to excessively deteriorate given our plans for an improved operating margin.
The Mayoral executive’s 100 Days Programme has placed financial recovery at the centre of efforts to improve the City’s governance. We have outlined how, by the end of January 2025, key areas of our revenue collection improvements will be addressed through intensified revenue collection.
The City has a debtors’ book of over R26 billion and the bulk of those who owe are households. We want to accelerate our efforts to enhance a culture of paying for services rendered and provided for by the City. We want to ensure that the City’s billing process is 90% based on actual readings and not estimates. We welcome the ratings review and we want to assure residents that we are on the road to financial recovery.
Enquiries:
Zonke Mahlangu
zonkem@tshwane.gov.za