Moody’s downgrades Tshwane for ‘weak liquidity and significant salary costs’
Ratings agency says city’s cash and short-term investment declined from R2.2bn in June 2020 to R1.1bn in February 2021
22 April 2021 - 15:20
The decision by the cash-strapped City of Tshwane to hike workers’ salaries by 6.25% in 2020 is among the factors that led to Moody’s Investors Service downgrading the metro’s credit ratings again this week.
The ratings agency downgraded the metro’s long-term global scale issuer rating to B1 from Ba3 and maintained the negative outlook. It also downgraded the city’s long-term national scale issuer rating by five notches to Baa2.za from Aa3.za, which is three notches above the country’s sovereign rating of Ba2...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.