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The City of Johannesburg, which is on the verge of financial collapse, said Moody\u2019s Ratings\u2019 positive outlook on the municipality\u2019s credit assessment provides a path to an upgrade that the authorities will seek to achieve through better governance.<\/p>\n
Moody\u2019s affirmed the South African commercial capital\u2019s Ba3 long-term issuer rating that had previously been on review for downgrade, according to a statement on 3 July.<\/p>\n
\u201cThe confirmation of the City of Johannesburg\u2019s ratings reflects a balance between its solid financial and economic fundamentals, with broadly stable operating performance, and a moderate debt burden, offset by a weaker governance and funding credit challenges,\u201d Moody\u2019s said.<\/p>\n
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About R2.1 billion of the city\u2019s R7 billion budget deficit for this year is unfunded. It owes hundreds of millions of dollars to state electricity and water utilities and faces looming power cuts because of unpaid bills. Finance Minister Enoch Godongwana has threatened to halt R8 billion in state funding because the city signed a wage deal that he says is illegal and unaffordable.<\/p>\n
Read:
How Moody\u2019s rates Joburg\u2019s financial outlook after its review
Johannesburg faces R2.1bn funding gap as its bills mount<\/p>\n
Moody\u2019s said it would consider upgrading the city\u2019s rating if it demonstrated \u201cconsistently improving\u201d governance in terms of budgeting and monitoring, as well as indications strengthening sovereign support.<\/p>\n
Johannesburg will remain focused on strengthening its financial management and governance to ensure long-term sustainability, with the ultimate goal of securing future credit-rating upgrades, chief financial 0fficer Tebogo Moraka said in a statement on 4 July.<\/p>\n
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\u201cThe city views this rating action as an important milestone in restoring market confidence and reaffirming Johannesburg\u2019s position as South Africa\u2019s economic engine,\u201d he said. \u201cThe administration will continue implementing reforms that improve governance, strengthen financial sustainability and support long-term infrastructure investment for the benefit of residents, businesses, and investors.\u201d<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n
#Joburg #sets #sights #Moodys #upgrade #positive #outlook<\/p>\n","protected":false},"excerpt":{"rendered":"
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