CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY - Credit rating announcement

Credit rating announcement

THE CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY
(A Municipality in terms of Section 155 of the Constitution of the Republic of South Africa, duly established
by notice in the Provincial Notice 479/2000 dated 22nd September 2000, of the Western Cape, pursuant
to Section 12(1) and Section 14(2) of the Local Government: Municipal Structures Act, 1998 (Act 117 of
1998) as amended)
JSE alpha code: BICITY
(“CCT” or the “Municipality”)

CREDIT RATING ANNOUNCEMENT

CCT hereby notifies its debt investors that Moody’s Investor Services South Africa Proprietary Limited (“Moody’s”)
has confirmed CCT’s long term issuer and senior unsecured debt ratings and short term issuer rating of ‘Baa3’ and
‘P-3’ respectively on a global scale and ‘Aaa.za’ and ‘P-1.za’ respectively on a national scale with a negative
outlook.

The credit ratings reflect Moody’s view of the CCT’s strong financial performance supported by its prudent
financial management, large and diversified economic base and predictable sources of revenue from property
taxes and service charges. CCT has consistently generated operating surplus, strong liquidity compared with that
of its peers in South Africa and low debt (expected to increase over the next three years as a result of the City's
focus on improving the resilience of its water infrastructure). The City's credit profile is constrained by Cape
Town's capital spending pressure, as a result of water shortage because of drought, infrastructure backlogs, and
population growth.

The full credit rating report is available at http://www.capetown.gov.za/Work%20and%20business/Invest-in-
cape-town/The-Citys-investor-relations/The-Citys-credit-rating


16 March 2020

Debt Sponsor: Nedbank CIB, a division of Nedbank Limited

Date: 16-03-2020 09:51:00
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