Moody’s Ratings has affirmed Johannesburg’s Ba3 long-term issuer rating, removing it from review for downgrade and assigning a positive outlook. The agency cited the city’s solid financial and economic fundamentals, though it flagged weaker governance and funding challenges as offsetting factors. The municipality faces serious fiscal strain. Currently, it has a budget deficit of about $408 million, with roughly $122 million still unfunded. Johannesburg also owes hundreds of millions of dollars to state-owned electricity and water providers. Meanwhile, South Africa’s finance minister has threatened to withhold approximately $466 million in government funding over a wage deal he considers illegal and unaffordable. The positive outlook offers a potential path to a future upgrade. Johannesburg’s CFO called the decision a milestone in restoring market confidence, pledging financial reforms, stronger governance, and sustainable infrastructure investment to support a future ratings upgrade.
Bloomberg