CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY - Credit rating announcement

Credit rating announcement

CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
(a municipality as described in section 2 of the Local Government Municipal Systems Act, 2000, duly
established in terms of Notice No. 6766, promulgated in the Provincial Gazette Extraordinary of
1 October 2000 in terms of section 12(1) read with section 14(2) of the Local Government: Municipal
Structures Act, 1998, as amended)
Issuer Bond Code: BIJHB
(the "City")

CREDIT RATING ANNOUNCEMENT

Bondholders are hereby advised that the credit rating agency, Moody's Investor Services
Incorporated ("Moody's"), has confirmed the City's ratings, as follows:

    •    long-term issuer rating (domestic currency) of Ba3;
    •    senior unsecured medium-term note ("MTN") programme rating (domestic currency) of (P)Ba3;
    •    long term issuer national scale rating (domestic currency) of A1.za;
    •    senior unsecured MTN programme (domestic currency) of A1.za; and
    •    short term issuer national scale rating (domestic currency) of P-1.za.

In addition, the City's Baseline Credit Assessment (BCA) of ba3 has also been confirmed.

The City's outlook remains positive, and the rating review for downgrade, which commenced on
17 April 2026, has now been concluded.

Moody's advised that this rating action follows the JSE Limited's ("JSE") decision to lift the suspension
of the City's debt instruments after the City made its audited annual financial statements for the year
ended 30 June 2025 ("2025 AFS") available to bondholders.

Moody's notes that the decision to confirm the ratings of the City reflects the decreased risk of debt
acceleration and potential default of the City on its notes listed on the JSE. Moody's has indicated that
the failure by the City to meet the submission deadline for the 2025 AFS reflects weaker governance
and management practices which is reflected in the Ba3 rating.

The confirmation of the City's ratings reflects a balance between its solid financial and economic
fundamentals, with broadly stable operating performance, and a moderate debt burden, offset by
weaker governance and funding credit challenges. Ease of access to funding remains adequate but
subject to uncertainty which is reflected in a lower assessment than previously.

Moody's has further noted that the City's outlook is positive due to the City's resilient standalone credit
profile and prospects of improving sovereign level conditions, mirroring the sovereign outlook
(Government of South Africa, Ba2 positive) which changed to positive during the review period.

Moody's will consider upgrading the rating if the City demonstrates consistent improvement in its
governance in terms of budgeting and monitoring, eliminating findings in the auditor statements and
indications of strengthening sovereign support and/or sovereign's rating upgrade.

Moody's announcement in this regard is available from Moody's website at:

Moody's Ratings confirms the City of Johannesburg's ratings with a positive outlook, concluding its
review | Rating Action | Moody's

Johannesburg
6 July 2026

Debt Sponsor
One Capital

Date: 06-07-2026 10:05:00
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