The city says Moody’s ascribes this upgrade to the improvement in the city’s operating performance and the strong liquidity position built up over the past two years.
Tshwane Mayor Solly Msimanga. Picture: @SollyMsimanga/Twitter
It says Moody’s ascribes this upgrade to the improvement in the city’s operating performance and the strong liquidity position built up over the past two years.
The DA says the upgrade means those who want to do business with Tshwane, particularly local and international investors who buy debt instruments, will begin to offer discounted interest rates and better terms despite the recent rate hike by the Reserve Bank.
The city said in a statement: “Our detractors do not want to see and recognise the good work that we do in this City but it is encouraging that professional institutions like Moody’s, see this city for what it is and report what they see on the ground.
“This hasn’t happened in the past seven years. We are informed that this City’s liquidity position has, over the past two years, improved due to enhanced operating performance in which our Financial Sustainability Plan has played a big part.
“We have implemented cost-cutting measures without compromising on service delivery and thus we have significantly stretched the spend in each rand to benefit our people. This credit rating is testament to this administration’s commitment to building a capable city that can deliver services to our people.”