City of Ekurhuleni rejects Moody’s rating downgrade

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.