Cape Town maintains ‘AA’ credit rating

4 April 2012

The City of Cape Town has maintained its good credit rating, Deputy Mayor Ian Neilson said on Tuesday.

He said that ratings agency Moody’s International confirmed the city had maintained a double-A credit rating, which meant its financial position was strong and its credit risk low.

“Companies that do business with the city can do so in the full knowledge that the city is able to pay its accounts,” Neilson said. “A strong rating allows for a lower interest rate from banks and other financial institutions.”

According to Moody’s credit report, Cape Town had proper financial governance and prudent policy strategies.

Neilson said budget execution and cash flows were regularly monitored, with many internal controls.

Sapa