The ratings agency points to the weakening financial position of the two cities and, in the case of Tshwane, the heightened political uncertainty
Two of SA’s biggest metros, Tshwane and Ekurhuleni, have been pushed further into junk status by ratings agency Moody’s Investors Service, as the cities’ financial situation deteriorates as a result of Covid-19.
Moody’s downgraded the two Gauteng metros on Wednesday. The province contributes more than a third of the country’s GDP. While the country’s economic situation was precarious before the Covid-19 lockdown, it worsened over the past few months and has specifically affected revenue collection in municipalities.