Fitch Affirms Johannesburg Long-term Local Currency 'BBB' IDR; Withdraws Ratings
Under EU credit rating agency (CRA) regulation, the publication of sovereign (including by CRA definition regional or local authorities of a state) reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations. The next review of CoJ's ratings was scheduled on 02 December 2016.
KEY RATING DRIVERS
The ratings reflect Fitch's expectations of CoJ's low debt over the medium term, robust budgetary performance by international standards, conservative financial management aimed at maintaining high levels of liquidity and potential national support in light of its important status as the largest city in South Africa (BBB-/BBB/Stable).
The ratings also take into account potential pressure on revenue generation stemming from a slowing economy amid structural features of high unemployment and rapid demographic growth.
Fitch has chosen to withdraw the ratings of CoJ for commercial reasons. Accordingly, Fitch will no longer provide ratings or analytical coverage for CoJ.