Ratings agency Moody's logo and rating grid. Jean-Marc Barrère/Hans Lucas via AFP
JOHANNESBURG - Rating agency Moody's has put the City of Johannesburg on a credit downgrade watch.
It has highlighted the financial woes of South Africa's biggest financial hub.
The city has a credit rating of Ba3, which is three notches below investment grade or so-called junk status.
Moody’s statements come after the JSE suspended trade in the city’s bonds last month.
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It cited the fact that Johannesburg had failed to publish its latest audited financial statement in the stipulated timeframe.
The credit rating agency says Joburg has not defaulted on its debt repayments.
But the JSE move disrupts the city’s access to markets to raise money.
Last year, the Auditor General’s office highlighted R1-billion in irregular spending at the city.
It said it was concerned about contracts that were awarded to companies with connections to city officials.