Moody's cuts South African issuers

Moody's Investors Service said it downgraded the long-term ratings of 13 South African sub-sovereign issuers on the South African national scale, including 12 local governments and one government-related issuer, and changed the outlook to negative from stable on another seven local governments in the country.

All sub-sovereign ratings in the country carry negative outlooks, in line with the sovereign rating.

Moody's said the following actions were prompted by the weakening of the South African government's credit profile, as captured by Moody's downgrade of South Africa's government bond rating to Baa1 from A3:

• City of Cape Town: Long-term issuer and debt ratings downgraded to Aa3.za, with negative outlook, from Aa2.za; short-term issuer rating of P-1.za affirmed;

• Metropolitan Municipality of Ekurhuleni: Long-term issuer and debt ratings downgraded to Aa3.za, with negative outlook, from Aa2.za; short-term issuer rating of P-1.za affirmed;

• City of Johannesburg: Long-term issuer and debt ratings downgraded to A1.za, with negative outlook, from Aa3.za; short-term issuer rating of P-1.za affirmed;

• City of Tshwane: Long-term issuer rating downgraded to A1.za, with negative outlook, from Aa3.za; short-term issuer rating of P-1.za affirmed;

• Metropolitan Municipality of Nelson Mandela Bay: Long-term issuer rating downgraded to A1.za, with negative outlook, from Aa3.za;

• East Rand Water Care Co.: Issuer rating downgraded to A2.za, with negative outlook, from A1.za;

• Municipality of Mbombela: Issuer rating downgraded to A3.za, with negative outlook, from A2.za;

• Municipality of Breede Valley: Issuer rating downgraded to Baa1.za, with negative outlook, from A3.za;

• Municipality of George: Issuer rating downgraded to Baa1.za, with negative outlook, from A3.za;

• Municipality of KwaDukuza: Issuer rating downgraded to Baa1.za, with negative outlook, from A3.za;

• Municipality of Matlosana: Issuer rating downgraded to Baa1.za, with negative outlook, from A3.za;

• Municipality of Sol Plaatje: Issuer rating downgraded to Baa1.za, with negative outlook, from A3.za;

• Municipality of Swartland: Issuer rating downgraded to Baa1.za, with negative outlook, from A3.za;

• Municipality of Rustenburg: Issuer rating of A2.za, outlook changed to negative from stable;

• Municipality of Amathole: Issuer rating of A3.za, outlook changed to negative from stable;

• Municipality of Lephalale: Issuer rating of Baa1.za, outlook changed to negative from stable;

• Municipality of Greater Tzaneen: Issuer rating of Baa2.za, outlook changed to negative from stable;

• Municipality of Knysna: Issuer rating of Baa2.za, outlook changed to negative from stable;

• Municipality of Maluti-a-Phofung: Issuer rating of Baa2.za, outlook changed to negative from stable;

• Municipality of uMngeni: Issuer rating of Baa2.za, outlook changed to negative from stable; and

• South African National Road Agency: Issuer ratings of Baa2/P-3 (global scale, local and foreign currency) and A2.za/P-2.za (South African national scale) affirmed, with negative outlook.

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