King Cetshwayo District Municipality
- King Cetshwayo District Municipality
- Year : Jun 2019
Summary
The rating on King Cetshwayo District Municipality (‘KCDM’) reflects the relatively strong South African sector score for local authorities, combined with the entity’s very low gearing and strong liquidity, which offsets the inherent weakness in KCD’s entity profile.
Additional Information
Rating triggers
Positive rating action is unlikely as it would depend on a material improvement in the financial position of the district and its residents. Alternatively, a change in mandate that allows KCDM to broaden its scope of operations and successfully diversify income sources could also support a higher business profile score.
Negative rating action could arise if KCD’s financial position were to deteriorate significantly due to a material increase in debt or a large decrease in cash holdings. The rating may also be negatively impacted if the ‘Qualified’ audit opinion persists.
