CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - Moody's rating recent developments - BIJHB

Moody's rating recent developments - BIJHB

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

Bond Code: COJ05
ISIN No: ZAG000054339
Bond Code: COJ07
ISIN No: ZAG000085044
Bond Code: COJ08
ISIN No: ZAG000137571
Bond Code: COJG01
ISIN No: ZAG000116708

MOODY’S RATING RECENT DEVELOPMENTS

Moody’s has on 7 November 2019 affirmed the City of Johannesburg’s Baa3/p-3 issuer and debt ratings
and negative outlook. The decision to affirm the negative outlook on the City’s rating reflects the
challenges emanating from the weakening of the sovereign credit profile. Moodys has also affirmed the
long-term and short-term national scale issuer and debt ratings of Aa1.za/P-1.za.
Moody’s has cited that whilst some of the idiosyncratic risks that led to them assigning a negative
outlook receded over the past year, Johannesburg’s rating is limited by the sovereign bond rating as
other Baa3 rated sub-sovereigns.

Moody’s has also stated that Johannesburg’s 2019 unaudited financial statements show a significant
increase in operating revenue, resulting in substantial improvement in the city’s liquidity position.

Credit strengths include:
   - Improving operating performance, supported by a large tax base,
   - Improving liquidity,
   - Sophisticated financial management and,
   - Large and diversified economic base.


The City of Johannesburg continues to consistently demonstrate its financial resilience and
sustainability.

11 November 2019

Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank division)

Date: 11/11/2019 05:40:00
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