City receives highest municipality rating from Moody's International

Moody's International commends the City of Cape Town's "prudent financial management" and awards it the highest possible municipality rating. Read more below:

Moody's International's newly-released Credit Rating report reaffirms the City of Cape Town's strong credit rating of Aa3. This rating is the highest that a South African municipality can obtain from Moody's.

According to the Moody's International report, their latest credit opinion "reflects the City of Cape Town's strong budgetary performance and good liquidity position".

In the report, from this globally respected agency, Moody's state that the City is expected to maintain its relatively strong position in the medium term supported by an overall prudent financial policy and a relatively large and evenly diversified economic base.

We are very pleased that the City of Cape Town has maintained its strong credit rating, particularly in light of national and global economic volatility. A favourable rating from Moody's - one of the world's leading credit agencies - provides investors and the community with confidence in the financial leadership and management of this municipality.

A strong rating allows for a lower interest rate from banks and other financial institutions, which places the City in a stronger financial position. The stronger the City's financial position, the more resources can be allocated to our residents, particularly to those most in need of assistance.

Statement issued by Executive Deputy Mayor, Alderman Ian Neilson, City of Cape Town, April 4 2013

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