CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY - Credit rating announcement - BICITY

Credit rating announcement - BICITY

THE CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY
(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)
JSE alpha code: BICITY
(“the City”)

CREDIT RATING ANNOUNCEMENT

The City hereby notifies its debt investors that Moody’s Investor Services South Africa Proprietary Limited
(“Moody’s”) has affirmed the long-term and short-term national scale issuer and debt ratings of Aaa.za/P-
1.za. A negative outlook has been maintained.

The credit ratings reflect Moody’s view of the City’s strong financial performance supported by its prudent
financial management, large and diversified economic base and predictable sources of revenue from
property taxes and service charges. The City has consistently reported robust operating surplus, strong
liquidity compared with that of its peers in South Africa and low debt (expected to increase gradually over
the next three years). The City’s credit profile is constrained by the impact of the coronavirus pandemic,
which has weakened the City's operating performance. However, the City's overall financial performance
remains stronger than that of its rated peers in South Africa.

The full credit rating report is available at
https://www.capetown.gov.za/Work%20and%20business/Invest-in-cape-town/The-Citys-investor-
relations/The-Citys-credit-rating.

11 June 2021

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 11-06-2021 10:09:00
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