Johannesburg – Ratings Agency Moody's
on Friday withdrew Drakenstein Municipality's A3.za rating for what
it termed “its own business reasons”.
The agency did not elaborate on why the
rating was withdrawn‚ but referred to its policy on withdrawal.
This policy encompasses ten reasons for a withdrawal‚ ranging from
an internal clerical error to incorrect‚ insufficient or otherwise
inadequate information being provided. It also mentions bankruptcy‚
debt restructuring‚ write-downs or reorganisations as potential
issues in a withdrawal of a rating.
At the time of withdrawal‚ the rating
carried a stable outlook.
Drakenstein is the second largest
economic region of the Western Cape‚ following the City of Cape
Town and includes the towns of Paarl and Wellington. The municipality
is home to a population of approximately 218‚000 and displays
relatively low unemployment levels around 20%.
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