While South Africa on the whole may not be faring too well as far as credit ratings are concerned, the City of Johannesburg has plenty to celebrate following Fitch Ratings' upgrading of its national long-term rating.
Fitch furthermore upgraded its national senior unsecured ratings on outstanding bonds and affirmed Joburg's long-term local currency rating with the outlook on stable. The ratings agency pegged Joburg's fiscal strength and sustainable debt levels as key drivers for the ratings action.
Finance minister Pravin Gordhan has praised the city's performance, saying that South Africa needs cities which are financially sustainable and able to invest in infrastructure that improves the lives of the country's citizens.
In a statement, National Treasury said:
"Prudent management of city budgets should be the focus of our cities because the success or failure of local government will determine whether millions of poor and marginalised people live a dignified life in decent conditions."
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