Moody’s assigns A1.za debt rating to Ekurhuleni’s (EMM06) ZAR900 million notes due 2025

Johanessburg, South Africa (Capital Markets in Africa) — Moody’s Investors Service has today assigned a long-term debt rating of A1.za (South African national scale rating) to Ekurhuleni Metropolitan Municipality’s ZAR900 million senior unsecured amortising fixed-rate notes due 2025. These notes are issued under Ekurhuleni’s ZAR8 billion Domestic Medium Term Note programme rated A1.za and will be listed on the Johannesburg Stock Exchange. Proceeds from the notes will be used to finance the city’s infrastructure requirements.

Ekurhuleni’s long-term issuer and debt ratings of A1.za reflect Ekurhuleni’s traditionally conservative financial management and overall moderate indebtedness. With the upcoming bond issuance, Ekurhuleni’s debt exposure will increase marginally to an estimated ZAR6.6 billion, or a moderate 22% of budgeted operating revenue in fiscal year (FY)2015, from 20.6% in FY2014.

Based on total revenue of ZAR26.6 billion (US$2.1 billion) in FY2014, Ekurhuleni ranks third among the five metropolitan municipalities rated by Moody’s in South Africa. The city has a population of 3.2 million, which accounts for 26% of the population of Gauteng province, where it is located, and 6.2% of South Africa’s.