BIJHB - Moody's Rating Recent Development 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 Communication to Investors MOODY’S RATING RECENT DEVELOPMENTS Moody’s has on 7th April 2022 taken rating action on the City of Johannesburg following the affirmation of Ba2 rating for the Government of South Africa and the change of outlook to stable. Moody’s has taken the following rating actions: • Affirmed the Baseline Credit Assessment (BCA) of Ba3, the Long-Term Global Scale Rating (LT GST) and National Scale Rating (NSR) issuer ratings of Ba3/A1.za for the City of Johannesburg and changed the outlook to Stable from negative. • Moody’s also affirmed the Short-Term National Scale (ST NSR) Rating of P-1. za and affirmed the Short-Term Global Scale Rating (ST GSR) of NP. The ratings of the City of Johannesburg have been affirmed with a stable outlook to reflect Moody’s expectation that the issuer’s credit profile shall remain in line with its current rating levels. The rating action on South Africa’s sovereign points to improvements in the operating environment, whilst structural sector challenges remain, for the entity. Rationale for Affirmed Rating Moody’s cited that the affirmation of City of Johannesburg’s Ba3 reflects Moody’s expectation that the operating environment will improve slightly, in particular, as the national and local economies recover from the pandemic, while significant structural challenges continue to weigh on the ratings of the City of Johannesburg and achieve moderate operating performance for the fiscal year ended 2021. Johannesburg 11 April 2022 Debt Sponsor Absa Bank Limited (acting through its Corporate and Investment banking division) Date: 11-04-2022 10:40:00 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.