Credit rating announcement - BICITY
THE CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY
(A Municipality in terms of Section 155 of the Constitution of the Republic of South Africa, duly established
by notice in the Provincial Notice 479/2000 dated 22nd September 2000, of the Western Cape, pursuant
to Section 12(1) and Section 14(2) of the Local Government: Municipal Structures Act, 1998 (Act 117 of
1998) as amended)
JSE alpha code: BICITY
(“CCT” or the “Municipality”)
CREDIT RATING ANNOUNCEMENT
The CCT hereby notifies its debt investors that Moody’s Investor Services South Africa Proprietary Limited
(“Moody’s”) has downgraded the CCT’s global scale rating to Ba2/NP from Ba1/NP and affirmed the long-
term and short-term national scale issuer and debt ratings of Aaa.za/P-1.za. A negative outlook has been
maintained.
The downgrade of the CCT’s ratings reflects the challenges emanating from the weakening of the
sovereign credit profile. In addition, Moody’s has noted that the CCT’s credit profile is constrained by
capital spending pressure arising from infrastructure backlogs and population growth as well as the
impact of the coronavirus pandemic, which has hurt operating performance and weakened liquidity,
although it remains stronger than that of its peers in South Africa.
The full credit opinion can be found at the following link on the CCT’s website:
http://www.capetown.gov.za/Work%20and%20business/Invest-in-cape-town/The-Citys-investor-
relations/The-Citys-credit-rating.
2 December 2020
Debt Sponsor
Nedbank CIB, a division of Nedbank Limited
Date: 02-12-2020 02:35:00
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