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 (“municipality” or the “issuer”) Communication to Investors GLOBAL CREDIT RATING CO. RATING RECENT DEVELOPMENTS Global Credit Ratings Co. (GCR Ratings) has on 13th July 2022 downgraded the City of Johannesburg’s National scale long-term and short-term issuer Ratings to A+(ZA) and A1(ZA) respectively. The outlook is Stable. Rating Changes: - Long Term Issuer National Scale Rating, downgraded to A+(ZA), from AA-(ZA) - Short Term Issuer National Scale rating, downgraded to A1(ZA) , from A+(ZA) Outlook: - Affirmed, Stable GCR Ratings has noted that the City’s operating performance has remained fairly stable and that the Stable Outlook reflects GCR’s expectation that despite the metro’s high leveraged position and increasing expense base, it appears to have sufficient diversified income streams and liquidity sources to maintain its financial profile. They have however also alluded that the rating considers the City’s high expense base, exacerbated by a continually increasing level of unauthorized, irregular, fruitless and wasteful expenditure coupled with its high gearing and more limited access to funding. This is counterbalanced by the City’s position as the economic centre of South Africa with well- diversified sources of internally generated revenues and moderate liquidity profile. Johannesburg 14 July 2022 Date: 14-07-2022 09:53:00 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.