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Nelson Mandela Bay Municipality gets positive Moody's rating score

Feb 7, 2019
Nelson Mandela Bay Municipality gets positive Moody's rating score

The Nelson Mandela Bay Municipality says it is pleased at the recent Moody's rating score of Baa3/Aaa.za with a stable outlook, delivered on January 21, 2019.

"However, the City is under no illusion that this is the best that we can achieve," described Nelson Mandela Bay Municipality Communications and Media Management Officer, Mthubanzi Mniki.

"This is despite this news not making the headlines, as news about the recent assassinations and gangster violence attracted more attention."

 He said that in order for the institution to keep up with the pace in terms of these assessments and comfort for investors, bankers, etc., the Nelson Mandela Bay Municipality makes use of credible or internationally-recognised Rating Agent (i.e. Moody’s Investors Service).

"Moody’s Investors Service is one of the Big Three Rating agencies, which include Standard and Poor as well as Fitch Ratings.

"This rating could not have come at a better time, as the City is under pressure to boost the local economy by attracting foreign investments, build entrepreneurial skills and create jobs," Mniki added.

"It is now critical for the City to continue to improve our systems, plans, implementation and spending. It is the conscious intention of this administration to make this a focus area and a priority.

"One of the important steps that the City has taken was to recently advertise the positions of senior management officials, which includes the Chief Financial Officer."

‘A good story to tell for the Nelson Mandela Bay Municipality’

 He said that stability in management systems comes as one of the important pillars and priorities of the leadership of the City.

"It is also critical to mention that the leadership has identified a deficiency in the implementation of Council decisions, which have in some instances resulted in underspending.

"In a City with so many service delivery challenges and backlogs in all spheres, this is unacceptable," Mniki said.

"However, it must be emphasised that all such oversight work will be done within the confines of the Municipal Systems Act and Municipal Finance Management Act."

He explained that an investor, banker or country that intends to plough money into our City would want to firstly thoroughly measure the financial position / health of the institution and its management systems.

"As a financial institution, will I be able to get back the money that I have ploughed into that institution?" Mniki noted.

"Key advantages of a good credit rating is to create confidence and trust in the minds of investors about the institution, and to create a good corporate image in the market.

"The big task ahead of us is to continue improving in terms of achieving better results in audit outcomes or work towards 'clean administration' which on its own encompasses various areas, including a clean audit."

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