CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - Moody's rating recent developments - BIJHB

Moody's rating recent developments - BIJHB

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
(“City of Johannesburg” or the “Issuer”)
Bond Code: COJ05
ISIN No: ZAG000054339
Bond Code: COJ08
ISIN No: ZAG000137571
Bond Code: COJG01
ISIN No: ZAG000116708

MOODY’S RATING RECENT DEVELOPMENTS

Moody’s has on 16 July 2021 taken rating action on the City of Johannesburg together with 4 other
South African Regional and Local Governments (RLGs) and 1 Government-related Issuer (GRI). The
City’s Baseline Credit Assessment (BCA) has been downgraded by one notch to Ba3 and outlook
changed to Rating on Review from negative .


Downgraded Ratings:
    -   LT Issuer Rating, Downgraded to Ba3 from Ba2, Placed on Review for further Downgrades
    -   NSR LT Issuer Rating, Downgraded to A1.za from Aa1.za, Placed on Review for further
        Downgrades
    -   NSR Senior Unsecured Medium-Term Note Program, Downgraded to A1.za from Aa1.za,
        Placed on Review for further Downgrade
    -   NSR Senior Unsecured Regular Bond/Debenture, Downgraded toA1.za from Aa1.za, Placed
        on Review for further Downgrade
    -   Senior Unsecured Medium-Term Note Program, Downgraded to (P)Ba3 from (P)Ba2, Placed
        on Review for further Downgrade
    -   Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3 from Ba2, Placed on Review
        for further Downgrade


On Review for Downgrade
    -   NSR ST Issuer Rating, P-1.za, Placed on Review for Downgrade


Affirmations
    -   ST Issuer Rating, Affirmed NP


Outlook:
    -   Changed to rating on Review from Negative


Moody’s cited that the decision to downgrade the RLG ratings by one-notch reflects the rising liquidity
pressures as a result of material shortfalls in revenue collection, that Moody’s expects to last, in the
context of a very weak growth.

Moody’s is of the view that South African Regional and Local Governments are likely to draw on cash
buffers, with different starting positions, eroding their capacity to absorb future shocks.

An in-depth assessment of the City of Johannesburg (the City) has not been performed by Moody’s to
establish the impact of COVID-19 on the City as well as its response to the effects of the pandemic.
The City of Johannesburg awaits such engagement.


19 July 2021

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

Date: 19-07-2021 05:45:00
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