(The following statement was released by the rating agency)
Jan 15 - Fitch Ratings has downgraded South Africa’s Metropolitan Municipality of Johannesburg’s (CoJ) Long-term local currency rating to ‘BBB’ from ‘BBB+'. The Outlook is Stable. The agency has also affirmed CoJ’s National Long-term rating at ‘AA-(zaf)’ with a Stable Outlook and the National Short-term rating at ‘F1+(zaf)'.
The rating actions follow the downgrade of South Africa’s Long-tern foreign currency Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB+’ and Long-term local currency IDR to ‘BBB+’ from ‘A’ on 10 January 2013 (see ‘Fitch Downgrades South Africa to ‘BBB’, Outlook Stable; at www.fitchratings.com) and the recalibration of the mapping of the national and international rating scales.
CoJ has a population of about 4 million, about 8% of the national total. It is the financial hub of South Africa, accounting for about 16% of GDP and about 15% of employment. Most company headquarters in the country are located in the city.
For more information on CoJ, see the full credit analysis at www.fitchratings.com.