Tight ship earns Jozi good score
NEO GOBA | 2016-05-thirteen 07:02:29.zero
Johannesburg mayor Parks Tau. File photograph.
Picture by: Moeletsi Mabe/ The Occasions
Johannesburg, South Africa’s financial hub, acquired an improve yesterday to its nationwide and international scores.
The excellent news comes as Moody’s Investor Providers lately famous the town’s prudence and consistency in managing its funds.
Johannesburg mayor Parks Tau stated: “The accolades now acquired are an affirmation of the correctness of our methods in managing the funds of the town.”
Moody’s upgraded Johannesburg for its improved monetary efficiency prior to now three years, the decline within the internet direct debt from 35% in 2011 to 30% final yr , and the R10.2-billion funding in capital infrastructure in the course of the 2015 monetary yr.
In response to Tau, the town has maintained wholesome liquidity ranges of about R5-billion whereas embarking on a R100-billion capital expenditure programme over 10 years.
The good thing about this twin improve is that credit score spreads on the town’s listed bonds ought to develop into narrower and make them extra engaging to buyers, whereas decreasing the price of new debt to fund capital expenditure.