By Lehlohonolo Lehana.
The City of Johannesburg said on Saturday, that Moody’s Ratings Agency had affirmed its long-term issuer rating at Ba3 and revised its outlook to positive.
Moody’s said the move reflects improving financial stability and governance at the city, while signalling the possibility of an upgrade in the future.
A positive outlook means Moody’s believes the financial position of the city is likely to improve over the next 12 to 18 months, increasing the chances of a future ratings upgrade.
The move comes after concerns earlier in 2026 over governance and delayed financial reporting.
It is expected that the positive outlook will boost investment and signals growing confidence in Johannesburg’s efforts to stabilise its finances and strengthen governance systems.
City Manager Floyd Brink said the outcome was an encouraging endorsement of Johannesburg’s financial position.
“The affirmation of the City’s credit rating, together with a Positive Outlook, is an encouraging endorsement of Johannesburg’s financial resilience and economic strength. While we recognise that governance improvements remain a priority, this outcome confirms that the City is financially stable, honours its commitments, and is implementing reforms to strengthen investor confidence and improve service delivery.”
“We remain focused on enhancing governance, investing in infrastructure, and creating an environment that supports economic growth and job creation,” Brink said.
The city council discussed the turnaround framework on June 24, with several councilors stressing implementation is key to recovery and calling for metro authorities to provide regular, transparent updates.
The blueprint showed the city had just five days of cash to cover costs, far short of the National Treasury’s minimum 30-day benchmark for the new financial year. It comprises six pillars including measures to protect and grow the city’s revenue base, strengthen financial governance and stabilize labor relations.