Fitch affirms Johannesburg City’s rating, outlook stable
Ratings agency Fitch Ratings has affirmed the City of Johannesburg long-term local currency issuer default rating (IDR) at 'BBB' with a stable outlook.
It also affirmed the national long-term rating at 'AA-(zaf)' with a stable outlook, the national short-term rating at 'F1+(zaf)' and the national senior unsecured ratings on its outstanding bonds at 'AA-(zaf)'.
“The ratings reflect the city’s important status as the largest city in South Africa; its sound management, with a fair degree of sophistication, and successfully tested access to capital markets; and strong and stable financial profile, with sustainable debt and improved liquidity,” the agency stated.
The ratings also took into account an operating environment that is under pressure from high unemployment and strong demographic growth, it added.
KEY RATING DRIVERS
Fitch pointed out that the Johannesburg metropolitan municipality contributed about 16% of national gross domestic product (GDP) and that activity generated by the implementation of the city's R100-billion ten-year investment plan would support the performance of the city’s economy and lead to average GDP growth of 2.5% a year over the medium term.
Further, the agency said the city’s debt was sustainable with the city expected to maintain its debt to revenue ratio below its self-imposed cap of 45% over the medium term.
It also highlighted that the City of Johannesburg’s operating margin had recovered to a “sound” 14% at the end of June, from 11.4% in 2013. The city was also expected to maintain this margin at between 14% and 15% over the medium term.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.
VISIT SHOWROOM
For over 15 years, Lilak Aluminium, a trusted leader in architectural extrusion supply, has delivered excellence to businesses like yours.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
