FINANCE: Confidence In Cape Town's Financial Stability
Recent Western Cape Business News
Moody’s International has again confirmed its confidence in the City of Cape Town’s finances, by assigning a short-term issuer rating of P-1.za, Moody’s highest rating, to the City.
This comes only four months after Moody’s confirmed the City’s double-A long-term credit-rating for the fourth consecutive year.
Alderman Ian Neilson, Executive Deputy Mayor of Cape Town and Mayoral Committee Member for Finance, said he is very pleased that once again the City’s sound financial management and good corporate governance have been recognized and reconfirmed by Moody’s, one of the world’s leading credit rating agencies.
“This rating will not only assist the City in its negotiations with creditors for future loans, but will also ensure more favourable lending rates. Companies that do business with the City can do so in the full knowledge that the City is able to pay their accounts. This favourable credit rating coupled with six years of unqualified audits, confirms the sound financial management of the City and makes Cape Town an investor-friendly destination that is safe to do business with,” Neilson said.
Moody’s Investors Service, an independent ratings agency, confirmed this issuer rating in a media statement issued on Friday 16 July.
Having a good Moody’s rating provides investors and the community with confidence in the financial leadership and management of the City. A good issuer rating means that investors are of the opinion that the City has the ability to honour unsecured financial contracts and obligations.
In their statement, Moody’s attributed the assignment of the issuer rating, as well as the earlier assigned credit rating, to the City’s “buoyant budgetary performance and its comfortable liquidity position.”
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