Moody’s happy with Joburg’s better finances

THE CITY of Johannesburg’s improving financial performance, supported by a strong and steadily growing tax base, was reflected in the city’s A1.za/P-1 national scale issue and debt rating, Moody’s Investors Service said this week. The ratings agency said in its annual report on the City of Johannesburg that the ratings were also driven by the city’s prudent approach to capital investments, which had resulted in moderate improvements in its liquidity profile and limited new borrowings to fund infrastructure. Net debt stock fell to R9.4 billion in the fiscal year to June last year, which is equivalent to 29 percent of its annual operating revenues. The city’s recent fiscal consolidation strategy facilitated a new borrowing of only R703 million last year, allowing the city’s indebtedness to reduce from 33 percent in financial year 2012. – Staff reporter