Moody's Confirms Ratings for City of Cape Town with a Negative Outlook THE CITY OF CAPE TOWN (A Municipality in terms of Section 155 of the Constitution of the Republic of South Africa, duly established by notice in the Provincial Notice 479/2000 dated 22nd September 2000, of the Western Cape, pursuant to Section 12(1) and Section 14(2) of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) as amended) Instrument Code: CCT01 ISIN: ZAG000054982 Instrument Code: CCT02 ISIN: ZAG000068719 Instrument Code: CCT03 ISIN: ZAG000075995 Instrument Code: CCT04 ISIN: ZAG000145376 (“CCT”) or (“the Municipality”) Moody's Confirms Ratings for City of Cape Town with a Negative Outlook Noteholders are advised that Moody's Investors Service (“Moody’s”) has, as at 29 March 2018 confirmed the long-term global scale ratings of 10 South African regional and local governments with stable outlooks. In the case of the City of Cape Town, Moody’s maintained the negative outlook, due to the current challenges associated with the water crisis”. It has also confirmed the global scale short-term ratings of Prime-3 for City of Cape Town. The ratings conclude the review for downgrade by Moody’s which commenced on 28 November 2017. Moody’s decision to confirm the global scale ratings for the regional and local governments relates to the sector’s close financial and operational linkages with the sovereign, who’s rating was also confirmed as Baa3 on 23 March 2018. The rationale for maintaining a negative outlook forCity of Cape Town is as a result of the uncertainty over whether the city will be able to avoid “Day Zero”, where the water supply could be cut and residents would have to collect water from water stations. Revenue from water and sanitation sales will be further impacted if this takes places, as well as the costs of operating and administrative costs of distributing emergency water supplies, which will place further pressure on the city’s budget. Moody’s will continue to closely monitor developments around these issues. More details of these ratings can be accessed through Moody’s website on: www.moodys.com Cape Town 4 April 2018 Debt Sponsor The Standard Bank of South Africa Limited Date: 04/04/2018 11:59:00 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.