Water crisis could lead to credit downgrade for Cape Town


File: A Japanese couple and a Capetonian guide were involved in the tragic New Years day Table Mountain climbing accident.

JOHANNESBURG - The City of Cape Town&39;s water supply crisis is credit negative, ratings agency Moody&39;s has warned. 

The agency currently rates Cape Town, along with South Africa, as one level above junk status.

It said if the city&39;s water woes persist it is unlikely that Cape Town will be able to maintain its conservative debt management policies.

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Analysts at the agency said that two of Cape Town’s main industries - tourism and agriculture - are likely to decline and reduce employment.

The water crisis is also expected to have a negative impact on public health because of poor sanitation.