<\/p>\n
Ratings agency Moody\u2019s will not be downgrading the credit rating of South Africa\u2019s economic engine, instead confirming a positive outlook.<\/p>\n
A review of the Johannesburg municipality\u2019s credit rating was initiated in April, with the agency last week leaving the rating at pre-review levels.<\/p>\n
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Johannesburg mayor Dada Morero and city manager Floyd Brink both celebrated Friday\u2019s announcement, declaring it a vote of confidence in the current administration.<\/p>\n
Moody\u2019s confirmed the municipality\u2019s long-term issuer rating remained at Ba3, while its national-scale and short term national-scale ratings were A1 and P-1, respectively.<\/p>\n
Johannesburg\u2019s short-term issuer rating stands at Not Prime, while the outlook is listed as Positive.<\/p>\n
Moody\u2019s\u00a0rating and definitions document\u00a0explains the meaning behind the ratings.<\/p>\n
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CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
P-1 issuers, or supporting institutions rated Prime-1, have \u201ca superior ability to repay short-term debt obligations\u201d.<\/p>\n
\u201cIssuers or issues rated A present above-average creditworthiness relative to other domestic issuers.<\/p>\n
\u201cObligations rated Ba are judged to be speculative and are subject to substantial credit risk. The modifier 3 indicates a ranking in the lower end of that generic rating category,\u201d Moody\u2019s explains.<\/p>\n
Not Prime issuers, or supporting institutions rated Not Prime, \u201cdo not fall within any of the prime rating categories\u201d.<\/p>\n
\u2018Improvements remain a priority\u2019<\/strong><\/p>\n The review of the municipality\u2019s credit rating was the result of a delay in producing audited financial statements and the subsequent suspension of municipal debt instruments by the Johannesburg Stock Exchange (JSE).<\/p>\n The JSE lifted the suspension in May after the municipality\u2019s financials received an unqualified audit opinion by the Auditor-General of South Africa (AG).<\/p>\n Read:<\/p>\n \u201cMoody\u2019s noted that the city continued to meet its debt obligations in full and on time throughout the suspension period, servicing R159.1 million in principal and R272.2 million in interest,\u201d Morero\u2019s office stated on Sunday.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n The city relayed that Moody\u2019s would consider upgrading the rating if the municipality addressed its budgeting shortfalls and the financial irregularities highlighted by the AG.<\/p>\n \u201cMoody\u2019s rating action also flags ongoing concerns over the City\u2019s internal governance controls and cash liquidity, and the administration accepts that assessment in full,\u201d stated the mayor\u2019s office.<\/p>\n Read: City Manager Floyd Brink said the announcement was an endorsement of municipality\u2019s resilience.<\/p>\n \u201cWhile we recognise that governance improvements remain a priority, this outcome confirms that the city is financially stable, honours its commitments, and is implementing reforms to strengthen investor confidence and improve service delivery,\u201d stated Brink.<\/p>\n This article was first published\u00a0here.<\/p>\n<\/p><\/div>\n #Moodys #rates #Joburgs #financial #outlook #review<\/p>\n","protected":false},"excerpt":{"rendered":" Ratings agency Moody\u2019s will not be downgrading the credit rating of South Africa\u2019s economic engine, instead confirming a positive outlook. A review of the Johannesburg municipality\u2019s credit rating was initiated… <\/p>\n","protected":false},"author":1,"featured_media":10710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[121,5590,1534,601,1455,559],"class_list":["post-10709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-financial","tag-joburgs","tag-moodys","tag-outlook","tag-rates","tag-review"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10709"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/10710"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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