CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - BIJHB - Moody's Rating Recent Development

BIJHB - Moody's Rating Recent Development

CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
(a municipality as described in section 2 of the Local Government Municipal Systems Act, 2000, duly
established in terms of Notice No. 6766, promulgated in the Provincial Gazette Extraordinary of 1
October 2000 in terms of section 12(1) read with section 14(2) of the Local Government: Municipal
Structures Act, 1998, as amended)
Issuer Bond Code: BIJHB

Communication to Investors

MOODY’S RATING RECENT DEVELOPMENTS

Moody’s has on 7th April 2022 taken rating action on the City of Johannesburg following the
affirmation of Ba2 rating for the Government of South Africa and the change of outlook to
stable.

Moody’s has taken the following rating actions:
   •   Affirmed the Baseline Credit Assessment (BCA) of Ba3, the Long-Term Global Scale
       Rating (LT GST) and National Scale Rating (NSR) issuer ratings of Ba3/A1.za for the
       City of Johannesburg and changed the outlook to Stable from negative.
   •   Moody’s also affirmed the Short-Term National Scale (ST NSR) Rating of P-1. za and
       affirmed the Short-Term Global Scale Rating (ST GSR) of NP.

The ratings of the City of Johannesburg have been affirmed with a stable outlook to reflect
Moody’s expectation that the issuer’s credit profile shall remain in line with its current rating
levels. The rating action on South Africa’s sovereign points to improvements in the operating
environment, whilst structural sector challenges remain, for the entity.

Rationale for Affirmed Rating

Moody’s cited that the affirmation of City of Johannesburg’s Ba3 reflects Moody’s expectation
that the operating environment will improve slightly, in particular, as the national and local
economies recover from the pandemic, while significant structural challenges continue to
weigh on the ratings of the City of Johannesburg and achieve moderate operating
performance for the fiscal year ended 2021.

Johannesburg
11 April 2022

Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment banking division)

Date: 11-04-2022 10:40:00
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