City Treasurer Jason Ngobeni

RELATED LINKS: Joburg's credit rating is on the up Johannesburg's financial standing is being given a thumbs-up, with a local agency raising its assessment on the City's long-term credit ratings. Read more City to launch new bond Johannesburg is to issue a fourth municipal bond, with the funds raised being used to defray capital expenditure costs. Read more Joburg appoints bond lead managers The city's fourth municipal bond is a step closer, with the appointment of Standard Bank as the lead manager and adviser for the issue. Read more Joburg shares expertise with other cities AFTER successfully issuing three municipal bonds, with a fourth on the horizon, Johannesburg hosted a conference to share its knowledge with other South African municipalities. Read more Doing a good job of selling the City THE head of the Joburg's new investor relations unit is up for a challenge, and believes she has got what it takes to put the sparkle in the city of gold. Read more Joburg appoints bond advisers to raise R6bn SEVEN banks will oversee the City's programme to raise funds through bond issues over the next five years. The issues are guaranteed success, as the underwriters will buy whatever is not snapped up by the market. Read more City of Johannesburg's bond issue THE launch of the first municipal bond in South Africa under new legislation received an overwhelmingly positive response from the market when it was launched in April 2004. Pegged at R1-billion, the bond is not guaranteed by the government nor secured by City assets. Read more Masondo upbeat on City's future LOOKING to past achievements and future challenges, in his State of the City address Executive Mayor Amos Masondo was confident Johannesburg was on a successful growth path. Read more Joburg is 'on the right path' The Growth and Development Summit was a success, and proved that "the City was on the right track". Read more

International nod for Joburg's credit control Fitch, an international ratings agency, upgrades the City's long-term credit rating, just a day after a local company gives Johannesburg the thumbs up. May 30, 2006 By Anish Abraham GLOBAL credit ratings agency, Fitch Ratings, has expressed its confidence in the way the City of Johannesburg handles its vast finances, upgrading its long-term credit rating. Fitch Ratings has upgraded the City's long-term national ratings from A- (zaf) to A (zaf), while its short-term credit rating has been affirmed at F1 (zaf). The City's rating outlook is also said to be positive. The new and improved rating, which is effective from 30 May, comes shortly after local ratings agency, CA-Ratings, upped its assessment. Credit rating agencies provide markets with credit opinions based on ongoing analysis of the particular investment. Johannesburg's ratings are reviewed annually, in terms of international standards and benchmarks, according to City Treasurer, Jason Ngobeni. With the City set to issue its fourth municipal bond on 31 May, the ratings would help reduce the cost of borrowing, used mainly to fund capital expenditure projects, Ngobeni added. Fitch also upgraded the City's long-term rating of the R1-billion partially guaranteed, 12-year bond (CoJ 02) from AA- to AA (zaf). The CoJ 02 bond was issued 2004. The City's 2005 Domestic Medium Term Note programme of R6-billion has been rated A (zaf). A statement from Fitch stresses, however, "the ratings are for the general medium term note programme and for the first specified issues only; it cannot be assumed that each individual issue under the programme carries the applicable programme rating." The upcoming R1,2-billion senior unsecured bond issue has been assigned an expected long-term rating of A (zaf), which will be confirmed on reception of final bond documentation. Improved budgetary performance The agency cites improved budgetary performance owing to strengthening management operations and growing economy, as well as the City's prudent stance on debt management and stable debt ratios as reasons for the credit rating upgrade. "Despite long-term challenges, such as income inequalities and low labour participation rates, the rating outlook remains positive," the statement adds. Future ratings upgrades "would take into consideration the consolidation of the City's operating margin and the R15-billion investment programme not triggering a debt-to-revenue ration overshooting 45-50 percent, up from the current 40 percent", the agency says. Ngobeni pointed out that another factor was the City's improved liquidity to meet unforeseen liabilities - from R700-million to the current R1,6-billion. "We are relying more and more on our own cash reserves," Ngobeni said. "We still need to borrow money though as the City's infrastructure backlog is still very much in consideration as far as capital expenditure costs are concerned." Permission to use web site material Publishers may use material from this site free of charge, as long as: Credit is given to either the "City of Johannesburg website (www.joburg.org.za)" or to "Johannesburg News Agency (www.joburg.org.za)"; If the article is used online, a link is provided to the original article on this website; The name of the article's author is acknowledged; The webmaster is informed of how and where the material is used (fill in this brief online form). Johannesburg News Agency is operated by BIG Media at 011-484-1400 Print this Page E-mail this article to a friend Help using Joburg.org.za