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TMMI - Credit Rating Change

2024/08/01 11:59:00

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                    TMMI - Credit Rating Change

ETHEKWINI METROPOLITAN MUNICIPALITY
JSE Bond Issuer Code: TMMI
('eThekwini' or the 'Municipality')

ETHEKWINI MUNICIPALITY'S CREDIT RATING CHANGE

EThekwini hereby advises that GCR Ratings ('GCR') has undertaken a credit rating review of the
Municipality, the outcome of which has resulted in the one notch downgrade of the National Scale Long
Term Issuer Rating to AA- (ZA) from AA (ZA). The National Scale Short Term Issuer Rating is affirmed at
A1+(ZA). The Outlook has been maintained as Negative.

The rating action reflects the still high operating performance challenges, particularly with regards to water
management. The Negative Outlook reflects medium-term uncertainties about sustainability and
governance indicators that could detract from the eThekwini's economic profile. This notwithstanding, the
ratings continue to factor in eThekwini's strategic positioning as an important economic centre, history of
balanced budgets and conservative leverage profile.

Full details on the ratings action by GCR on 31 July 2024 is publicly available on its website at
https://gcrratings.com/announcements/gcr-downgrades-ethekwini-municipalitys-national-scale-issuer-rating-
to-aa-za-on-still-high-operational-risks-outlook-is-negative/


01 August 2024

Debt Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited

Date: 01-08-2024 11:59:00
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