The ratings agency Moody’s has changed its outlook of the City of Cape Town municipality from negative to stable.

According to the Moody’s rating report, the rating change in outlook is based on the premise that ‘the operating environment will improve slightly, in particular as the national and local economies recover from the pandemic, while significant structural challenges continue to weigh on the ratings’.

‘The City is pleased with this change in outlook from negative to stable. Good rating opinions are crucial for prudent financial planning as the better the rating, the lower the interest charged on debt, which means it costs less to service debt and conserves public money. Although economic pressure is pronounced and the post Covid-19 disaster recovery has been much slower than anticipated, there is room for hope and optimism. In Cape Town, we are doing all we can to enhance resilience going forward and ensure we remain financially healthy enough to provide services,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.

The rating outlook is mirrored by the change in outlook of the City’s support provider, the South African government.

Source: City Of Cape Town