Ntuthuzelo Nene1 July 2024 | 17:21

Hill-Lewis welcomes Moody's move to upgrade Cape Town's credit rating

Moody's expects Cape Town's financial performance to strengthen further, exceeding previous forecasts for the next year and-a-half.

Hill-Lewis welcomes Moody's move to upgrade Cape Town's credit rating

Cape Town CBD © druid007/123rf.com

CAPE TOWN - Cape Town Mayor Geordin Hill-Lewis welcomed the city's credit rating upgrade by ratings agency Moody's from a stable to a positive outlook.

The ratings agency noted the city's proactive revenue collection rate keeping debt levels low.

Moody's expects Cape Town's financial performance to strengthen further, exceeding previous forecasts for the next year-and-a-half.

Hill-Lewis said the credit rating upgrade affirmed Cape Town as the standout metro for good governance.

He said that the upgrade would further strengthen the city's ability to fund its infrastructure investment, bringing down borrowing costs.

The mayor said that over three years, the city would invest R39.5 billion in infrastructure, with R9 billion of infrastructure spend in 2024/25 benefitting lower-income households.

The mayor estimated that these investments would create 130,000 construction-related jobs, building on the metro's status of having the country's lowest unemployment rate.