CITY OF EKURHULENI METROPOLITAN MUNICIPALITY - Credit rating announcement - BIEM

Credit rating announcement - BIEM

CITY OF EKURHULENI METROPOLITAN MUNICIPALITY
JSE alpha code: BIEM
(“City of Ekurhuleni”)

CREDIT RATING ANNOUNCEMENT

Noteholders are advised that Moody’s Investors Service (“Moody’s”) has downgraded City of
Ekurhuleni's credit ratings as follows:

    •   the Long-Term Global Scale Issuer Rating to Ba3 from Ba1 and maintained a negative outlook;
    •   the Long-Term National Scale Issuer Rating to A2.za from Aa1.za;
        the Senior Unsecured Long-Term Global Scale Debt Rating to Ba3 from Ba1; and
    •   the Senior Unsecured Long-Term National Scale Debt Rating to A2.za from Aa1.za.

The downgrade and negative outlook reflects the downside risks related to the City of Ekurhuleni’s
liquidity and operating performance over the foreseeable future. In addition, the impact of the corona
virus pandemic on revenue collection has exacerbated the City of Ekurhuleni’s weak liquidity profile.

The full rating announcement is available at https://www.moodys.com/research/Moodys-
downgrades-the-ratings-of-Ekurhuleni-Tshwane-and-ERWAT--PR_432479.

23 September 2020

Debt Sponsor
Nedbank Corporate and Investment Banking

Date: 23-09-2020 05:45:00
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