Fin24

Joburg downgraded

2012-10-02 18:14

Johannesburg - The City of Johannesburg's credit rating was downgraded on Tuesday, in line with the credit rating action taken on South Africa, the city said in a statement.

"While the economic climate is expected to slow down, the city is making progress in an array of aspects to minimise the expected impact," it said in a statement.

Moody's Investor Services downgraded several municipalities, including Johannesburg, on Monday, following its downgrade of South African sovereign debt.

Johannesburg's long-term debt is now rated A1.za, with a negative outlook, from Aa3.za. Its short-term issuer rating of P-1.za was affirmed.

In reaction, the city said its liquidity and gearing levels had improved markedly since 2009, when gearing levels reached 54%.

They were now at 43%, and would continue to decline.

The city had developed a financial plan for capital expenditure worth R100bn, announced by the mayor earlier in the year.

"The city continues to achieve its own targets, and continues to revise them to higher standards," it said.

"Despite the downgrade, the city wishes to assure the investment community and all its residents that all financial measures indicate an improved financial position."


Comments
  • tobydt - 2012-10-02 18:53

    Meanwhile, the WCape government is in London securing investments.

      vandross.ntshegi - 2012-10-02 22:38

      Lemme guess. It is the fault of apartheid

      tobydt - 2012-10-02 23:10

      WCape has not been downgraded, investers want to invest in the mother city. The provincial government is there securing a further influx capital which will be used in more projects. Cape Town is the only city in SA where residential areas have fibre optic cables. Meanwhile, in Gauteng...

      darren.raath.5 - 2012-10-03 05:58

      people dont be stupid vote for the DA. things are functioning and its not just a party for the white people. please open your eyes.

      lerato.kay.3 - 2012-10-03 06:05

      Including Cape Flats?

      tobydt - 2012-10-03 06:36

      lerato - Oh yes, FO cables in Cape flats too.

  • christian.denyschen - 2012-10-02 18:57

    Is this a case of the cracks are starting to show or am I just a negative boer?

  • Leigh Nicholl - 2012-10-02 19:12

    our education system is in desperate need of constant intervention, our airlines are running on loans, crime is through the roof, our law enforcement is constantly on the chopping block for corruption, what is our president doing with our tax payers money, upgrading is private residence while jhb has been downgraded. R220 million for his own benefit, how does this man sleep at night? obviously pretty well.

      tobydt - 2012-10-02 19:20

      "how does this man sleep at night?" On a pile of money, with lots of women.

      jeremy.forbes.1293 - 2012-10-02 21:58

      This man has no sense of shame, he is delighted to rob the SA taxpayer in broad daylight. Stealing from the poor is what he does best.He is the role model for leadership in this country - rob at will, without any consequences. The Middle classes both black and white in this country must at some point say enough is enough.

      mc.segal.5 - 2012-10-03 06:28

      Trouble is the poor dont know abot it ..

  • john.cryink - 2012-10-02 19:18

    Ths was a city that balanced its budget before 1994 thanks to cANCer communists cosatu now it is going one big "informal settlement"

  • ike.jakson - 2012-10-02 19:33

    You can’t trust any Municipality in this country; they pay most of the tax income that they get from the poor to the few bureaucrats at the top and the balance is stolen. Someone once said this of politicians but it better suits the Municipal Leaders: “to find an honest one is like looking to find a vegetarian shark.” No wonder they get rated down.

  • hendrikvs - 2012-10-02 19:37

    It is evident after 18 years that they just cannot do it!

  • hein.huyser - 2012-10-03 06:28

    You can only fool so many people for so long.

  • leonard.rom.7 - 2012-10-03 11:27

    disgusting!!!!!!!!!!!!!!

  • werner.dippenaar.77 - 2012-10-03 12:05

    For our government 15 % is adequate

  • alf.pop - 2012-11-02 08:57

    How dare these international agencies - after all the ANC run Municipality has salaries to pay - with the mayor only earning R 2 million per month! They really are trying hard to sink the place!

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