CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - Credit rating announcement

Credit rating announcement

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
(the “City”)

CREDIT RATING ANNOUNCEMENT

Bondholders are hereby advised that the credit rating agency, Global Credit Rating Company Limited
(“GCR”), has downgraded the City’s national scale long-term issuer rating to A(za) from A+(za), with
the short-term issuer rating affirmed at A1(za) and the outlook revised from Stable to Negative.

GCR noted that the rating downgrade and negative outlook for the City reflects ongoing pressures on
operating performance, evidenced in subdued income growth, increasing expenditures and relatively
weak collection rates. The income constraints have translated into deteriorating credit protection metrics
and tighter liquidity. This continues to restrict the ratings, notwithstanding the City’s position as the
economic centre of South Africa.

GCR further noted that a return to a stable outlook, in the shorter term, depends on the City’s ability to
stabilise its operating performance and liquidity reserves.

The GCR announcement in regard to the City’s credit rating is available from the GCR website at:
https://gcrratings.com/announcements.


Johannesburg
31 July 2023

Debt Sponsor
One Capital

Date: 31-07-2023 07:05:00
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