Moody's rates Ekurhuleni bond Aa2.za

Moody's Investors Service said it assigned a long-term debt rating of Aa2.za on the South African national scale rating to the ZAR 800 million upcoming bond issuance of the Metropolitan Municipality of Ekurhuleni.

This issue is a drawdown under Ekurhuleni's ZAR 4 billion domestic medium-term note program rated Aa2.za in July 2010.

Moody's said the rating reflects Ekurhuleni's traditionally conservative financial management approach and overall moderate indebtedness. With the upcoming bond issuance, Ekurhuleni's debt exposure will increase marginally to ZAR 4.4 billion, or a moderate 21% of its forecast operating revenue in the 2012 fiscal year, the agency said.

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