Fitch ups Johannesburg

Fitch Ratings said it upgraded Johannesburg Metropolitan Municipality's national long-term rating to AA-(zaf) from A+(zaf) and national short-term rating to F1+(zaf) from F1(zaf).

The outlook remains stable.

According to Fitch, the upgrade reflects strengthening operating performance, driven by a growing tax base and subsidies from the national government.

It also reflects higher provisions for asset depreciation, which help to self-finance its investments, and the municipality's long-term challenges such as income inequality and low labor participation, which tend to limit tax generation while requiring subsidies, the agency added.

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