GCR Ratings agency has assigned the City of Ekurhuleni’s ratings of BBB(ZA) and A3(ZA), respectively, with effect as of April 20.
This adjustment means the City’s rating outlook has changed from negative to stable. According to GCR Rating’s report, the revised outlook is based on adjusted medium-term budgets.
Ekurhuleni is also the only metropolitan municipality to have received a clean audit outcome from the auditor-general over the previous financial year.
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Furthermore, GCR has noted the enhanced levels of operational controls within the metro, which support initiatives to strengthen the institution’s financial position.
“This positive credit rating adjustment is a testament to the effectiveness of our back-to-basics philosophy as a multi-party coalition government,” said Mayor Tania Campbell.
“Our ability to sustain positive credit rating opinions enables us to borrow money at a lower interest rate, which save the taxpayer money when we service our debt.
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“I am optimistic that the City of Ekurhuleni is now on a positive trajectory towards financial stability. I wish to commend the administrative leadership of the City, under the city manager and the group chief financial officer on this milestone.
“The administration’s alignment to the multi-party coalition government’s vision is starting to bear fruit for the City.
“A healthy financial foundation will allow the City to develop resilience against possible future economic shocks and act as a basis for us to revitalise infrastructure across the City for a sustainable future.”
