Moody's drops Johannesburg's debt rating

Moody's Investors Service yesterday lowered the long-term national scale issuer rating of City of Johannesburg to Aa3.za from Aa2.za.

The rating action reflects the deteriorating liquidity position of Johannesburg and its already high level of gearing.

The liquidity pressures were caused by the global credit crisis and economic recession. Johannesburg invested R5.7 billion in infrastructure and new assets during the 2009 fiscal year.

Sapa

Posted at 10:11AM Dec 11, 2009 by Editor in Market  |