CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - Credit rating announcement

Credit rating announcement

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
(the "City")

CREDIT RATING ANNOUNCEMENT

Bondholders are hereby advised that the credit rating agency, Moody's Ratings ("Moody's"), has placed
the City's following ratings on review for possible downgrade:

    •    long-term issuer rating (domestic currency) of Ba3;
    •    senior unsecured rating (domestic currency) of Ba3;
    •    senior unsecured medium term note ("MTN") programme rating (domestic currency) of (P)Ba3;
    •    national scale rating ("NSR") long-term issuer rating (domestic currency) of A1.za;
    •    NSR senior unsecured rating (domestic currency) of A1.za;
    •    NSR senior unsecured MTN programme rating (domestic currency) of A1.za; and
    •    NSR short-term issuer rating (domestic currency) of P-1.za.

Concurrently, the City's short-term issuer rating (domestic currency) of Not Prime (NP) was affirmed.

In addition, the City's Baseline Credit Assessment (BCA) of ba3 has also been placed on review for
possible downgrade (previously Stable).

The above rating action by Moody's follows the decision by the JSE Limited ("JSE") to suspend the
registration of the City's programme memorandum and the listing of the City's listed debt securities
("Suspension"), as a result of the City's failure to publish its annual financial statements for the year
ended 30 June 2025 ("2025 AFS") within the timeframe prescribed by the JSE Debt and Specialist
Securities Listings Requirements. Moody's has indicated that this development reflects a deterioration
in its assessment of the City's governance, particularly in relation to transparency and timelines of
financial reporting.

Moody's has further noted that the Suspension does not in itself constitute a default under the debt
instruments. However, it is expected to reduce the tradability and liquidity of the City's outstanding
securities and constrains access to the local capital market.

Moody's will consider affirming the ratings at their current levels should the City submit its 2025 AFS by
31 May 2026, as indicated in the announcement published by the City on SENS on 2 April 2026, which
would in turn lead to the lifting of the Suspension by the JSE.
Moody's announcement in regard to the City's credit rating is available from Moody's website at:

Moody's Ratings places the City of Johannesburg's ratings on review for possible downgrade | Rating
Action | Moody's

Johannesburg
20 April 2026

Debt Sponsor
One Capital

Date: 20-04-2026 09:45:00
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