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 City”)
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 has on 25 November 2020 taken rating action on the City of Johannesburg following their
downgrade of the Government of South Africa rating to Ba2 from Ba1 and the maintenance of the
negative outlook on 20 November 2020. The City’s Baseline Credit Assessment (BCA) has been
downgraded by one notch to Ba2 and the negative outlook maintained.

Downgraded Ratings:
   - Long-term (LT) Issuer Rating, Downgraded to Ba2 from Ba1
   - Senior Unsecured Medium-Term Note Program, Downgraded to (P)Ba2 from (P)Ba1
   - Senior Unsecured Regular Bond/Debenture, Downgraded to Ba2 from Ba1

Affirmed Ratings:
   - Short-term (ST) Issuer Rating, Affirmed NP
   - National Scale Ratings (NSR) ST Issuer Rating, Affirmed P-1.za
   - NST LT Issuer Rating, Affirmed Aa1.za
   - NSR Senior Unsecured Medium-Term Note Program, Affirmed Aa1.za
   - NSR Senior Unsecured Regular Bond/Debenture, Affirmed Aa1.za

Outlook:
   - Remains Negative

Moody’s cited that the one-notch downgrade on the City of Johannesburg reflects the City’s exposure
to the weakening operating environment as indicated by the sovereign downgrade. The negative
outlook mirrors the negative outlook of the sovereign and the idiosyncratic challenges which South
African municipalities face in the medium term.


26 November 2020

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

Date: 26-11-2020 02:58:00
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