City of Johannesburg - Global Credit Rating Co. Rating Recent Developments 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: COJ05 ISIN No: ZAG000054339 Bond Code: COJ07 ISIN No: ZAG000085044 Bond Code: COJ08 ISIN No: ZAG000137571 Bond Code: COJG01 ISIN No: ZAG000116708 Communication to Investors GLOBAL CREDIT RATING CO. RATING RECENT DEVELOPMENTS Global Credit Ratings Co. has today accorded the City of Johannesburg Metropolitan Municipality a long term national scale Issuer rating of AA(ZA), and a short term rating of A1+(ZA). The outlook is accorded as Stable. City of Johannesburg Metropolitan Municipality (“Johannesburg”) has consistently demonstrated its financial resilience as evidenced by the generation of recurring surpluses, maintenance of healthy 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. Johannesburg is the economic heartland of South Africa, with a diverse economy accounting for around 15% of the country’s GDP. Social indicators are mainly above the national average, and the metro continues to attract migrants from around the country and the African continent. Johannesburg achieved another unqualified audit in FY17, whilst five municipal entities received clean audits. Johannesburg has demonstrated strong access to debt facilities from a wide range of sources, including commercial banks, development agencies and the capital market and also maintained stable debt ratios, all of which serve to lower risk to investors and stakeholders. 17 October 2018 Debt Sponsor Absa Bank Limited (acting through its Corporate and Investment Bank division) Date: 17/10/2018 01:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.