CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - BIJHB- Ratings Update

BIJHB- Ratings Update

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
Bond Code: COJ04
ISIN No: ZAG000030941
Bond Code: COJ05
ISIN No: ZAG000054339
Bond Code: COJ07
ISIN No: ZAG000085044
Bond Code: COJ08
ISIN No: ZAG000137571
Bond Code: COJG01
ISIN No: ZAG000116708

MOODY’S RATING RECENT DEVELOPMENTS

Moody's Investors Service has on the 28th March 2018 confirmed the City of Johannesburg’s long-
term and short term global scale ratings at Baa3/P-3 with a Stable outlook. The national scale ratings
of Aa1.za/P-1.za were not affected by the rating action. The rating action follows the potential
improvement of the South African government's credit profile, as captured by Moody's recent decision
to confirm South Africa's Baa3 government bond ratings and assign a stable outlook.


Summary of Ratings
Global Scale Ratings
    -   Short Term Issuer Rating, Confirmed P-3
    -   Long Term Issuer Rating, Confirmed Baa3
Outlook Actions
    -   Outlook, Changed To Stable From Negative
National Scale Ratings
    -   Short Term Issuer Rating, Confirmed P-1.za
    -   Long Term Issuer Rating, Confirmed Aa1.za


The City of Johannesburg has consistently demonstrated its financial resilience as evidenced by the
generation of recurring surpluses, maintenance of substantial cash balances and the continued roll
out of the capital expenditure program. All of this has been achieved within the context of a
deteriorating global economic environment in which emerging markets are the worst exposed.


As an agile and responsive entity, the City continues to experience strong revenue growth
underpinned by its status as South Africa's business capital and main financial and economic centre.
The City’s financial management systems remain sophisticated and its economic base remains large
and well diversified enough to absorb any adverse effects of the changing global economic climate.
Despite the increased capital expenditure, the City is still able to maintain stable debt ratios and still
generate surpluses, all of which serve to lower risk to investors and stakeholders.

Johannesburg
03 April 2018

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

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