Data provided by McGregor BFA
All data is delayed
Loading...
See More

Joburg downgraded

Oct 02 2012 18:14 Sapa

President Jacob Zuma greets people at Alexandra township, north of Joburg. Thousands gathered at Alexandra Stadium where the township is celebrating a century since its establishment. Picture: Muntu Vilakazi/City Press

Related Articles

Moody's cuts Eskom, Telkom ratings

Treasury unmoved by ratings downgrade

Investec: Ratings downgrade little surprise

Moody’s downgrades SA

Moody's downgrades 15 banking titans

Moody's downgrade 'premature'

 

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."


moody's  |  johannesburg  |  credit ratings
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
21 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Numsa prepares for life after Cosatu

Numsa has not only reiterated its call for President Jacob Zuma to resign but it is also preparing for life outside of Cosatu, a report states.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...