The Global Credit Ratings (GCR) has revised the City of Joburg’s rating from stable to negative.
“A ‘Positive’ outlook indicates the rating may be upgraded; a ‘Stable’ outlook indicates the rating is likely to remain unchanged, while a ‘Negative’ outlook indicates the rating may be lowered.”
Last July 2022, the City received a stable rating from the GCR.
The later decision was based on the Metro’s financial situation at the time. An income growth of 6.6% for the Financial Year 202, from about 5% back in 2020.
Expenditure also grew by a slightly higher 6.9% but at a lower rate than in 2020.
But how serious is a Municipal rating?
GCR confirm credit ratings are “forward-looking opinions on the relative creditworthiness of a specific financial obligation.”
A credit rating is valid until it is withdrawn, when the debt is paid. We will bring you more developments on this story and comment from the COJ.