About Credit ratings
A credit rating is a formal assessment of an organisation, governments, individuals, conglomerates or even a country. It is a particularly important score in that it determines whether or not an organisation or individual or country is able to exercise sound financial management. Managing a healthy credit score is particularly important, especially if there are plans to take on debt for numerous initiatives.
A credit rating is evaluated on the basis of financial transactions carried in the past and assets and liabilities at present. Credit rating allows a lender or a credit granter to evaluate the ability of the borrower to repay a loan. A low credit rating is considered as a sign of a high risk of non-payment of debt, while a high credit rating has the potential to qualify one for more credit facilities.
In essence, it is a measure of an organization’s ability to repay its financial obligations.
What is the City’s current Credit Rating?View the latest comment from FitchView the latest comment from Moody'sThe City has a split rating by both Moody’s (May 2011) and fitch (Oct 2010). Moody’s had rated the City slightly higher than Fitch at Aa2.za. However, in 2008, Moody’s downgraded the City’s rating to Aa3.za, bringing it in line with the Fitch equivalent. Moody's affirmed the City's national scale long and short term credit rating at Aa3.za and P-1.za respectively. Fitch ratings had also affirmed equivalent ratings at AA-.zaf and F1+.zaf