JOHANNESBURG - The City of Ekurhuleni has firmly rejected Moody’s rating downgrade.
Credit rating agency Moody's downgraded the City's ratings to Caa2 from Caa1 due to weakening governance and management practices.
A further downgrade is also on review.
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This means that the city is now rated as poor quality and a very high credit risk.
Moody's cites the city's delay in tabling its financial statements to the city council, following a dispute with the Auditor General as the the main reason for the downgrade.
At the same time, Moody's has also placed the City of Tshwane's credit rating on review for a downgrade.
This is due to its failure to submit its audited financial statements to the Johannesburg Stock Exchange by the end of February.