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.<\/p>\n
“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.<\/p>\n
Moody’s Investor Services downgraded several municipalities, including Johannesburg, on Monday, following its downgrade of South African sovereign debt.<\/p>\n
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.<\/p>\n
In reaction, the city said its liquidity and gearing levels had improved markedly since 2009, when gearing levels reached 54 percent.<\/p>\n
They were now at 43 percent, and would continue to decline.<\/p>\n
The city had developed a financial plan for capital expenditure worth R100 billion, announced by the mayor earlier in the year.<\/p>\n
“The city continues to achieve its own targets, and continues to revise them to higher standards,” it said.<\/p>\n
“Despite the downgrade, the city wishes to assure the investment community and all its residents that all financial measures indicate an improved financial position.”<\/p>\n
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