ETHEKWINI METROPOLITAN MUNICIPALITY - eThekwini Municipality's Credit Rating Change

eThekwini Municipality's Credit Rating Change

ETHEKWINI MUNICIPALITY
JSE Bond Issuer Code: TMMI
(“EThekwini” or the “Municipality”)

ETHEKWINI MUNICIPALITY’S CREDIT RATING CHANGE

EThekwini hereby advises that GCR Ratings (“GCR”) has undertaken a credit rating review of
the Municipality, the outcome of which has resulted in the one notch downgrade of the National
Scale Long Term Issuer Rating to AA (ZA) from AA+(ZA). The National Scale Short Term
Issuer Rating is affirmed at A1+(ZA). The outlook has been revised to Negative from Stable.

The rating action reflects CGR’s observation of the increased incidences of service delivery
failures by the Municipality, most notably due to delays in critical infrastructure repairs because
of the severe April 2022 floods. Furthermore, the introduction of the Section 154 of the
Constitution of South Africa intervention at the Municipality is viewed as a negative credit
development, highlighting increased governance and operational risks.

GCR's credit rating announcement is publicly available on its website at
https://GCRratings.com/announcements

31 May 2023

Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank division)
Date: 31-05-2023 11:59:00
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