Statement by the City’s Executive Deputy Mayor and Mayoral Committee member for Finance, Alderman Ian Neilson
Moody’s International yesterday confirmed its confidence in the City of Cape Town’s finances, by maintaining the City’s Double-A credit rating.
Our efforts and commitment to being a Well-run City are paying off as the City is once again rated at the high end of the six metropolitan municipalities rated by Moody’s in South Africa.
In a time of economic volatility, the City’s maintenance of its strong financial position is particularly noteworthy. A favourable rating from Moody’s – one of the world’s leading credit agencies – provides investors and the community with confidence in the financial leadership and management of this municipality.
Companies that do business with the City can do so in the full knowledge that the City is able to pay their accounts.
A strong rating allows for a lower interest rate from banks and other financial institutions, which places the City in a stronger financial position. The stronger the City’s financial position, the more resources can be allocated to our residents, particularly to those most in need of assistance.
According to the Moody’s report, “Cape Town’s administration reflects proper financial governance, which is geared towards maintaining the City’s strong financial position and ensuring robust cash flows. The City adheres to prudent policy strategies with respect to financial, debt and liquidity management. A well established and focused management team provides some stability to the City’s strategic planning and operations. Budget execution and cash flows are regularly monitored and the administration is committed to reinforcing internal controls. The City received an unqualified audit report for the financial year 2011”.
The report also refers to the relatively strong financial position in the medium term, supported by an overall prudent financial policy and a relatively large and evenly diversified economic base.
This vote of confidence serves to assure investors and residents of the sound financial management and leadership of this municipality.
Click here to view a full copy of the Moody’s International report.
