Buffalo City Municipality

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Buffalo City Metropolitan Municipality (2022-04)
  • Buffalo City Municipality
  • Year : May 2022
3 Tokens
USD 300.00
Summary

Cognisance is taken of BCMM’s status as a metropolitan municipality, given its role as a hub of economic activity in the region and the government support received, although its economic base is small and less diverse than some of the larger metros, restricting its operational flexibility. In terms of national GDP, BCMM contributes around 1.6%, with the Metro’s longer term average growth rate (from 2009-2019) of 1.45% being slightly lower than that of the national average at 1.68%. Economically, the industrial sector is an important contributor (particularly the motor industry) to the City, with it being is well positioned in East London in terms of its logistics potential.

Additional Information

The Stable Outlook reflects our expectation that the Metro will maintain conservative debt management despite an acceleration in its capex programme. In addition, GCR expects the City to preserve adequate liquidity. If the Metro’s debtors’ collections problems persist, leading to a weaker performance and/or decrease in cash holdings/liquidity metrics, negative rating action could be taken.

Related Publication

Buffalo City Municipality (2010-07)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Finances Across the Major Metropolitan Municipalities Appear to be Holding Firm but Not All are Benefitting

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GCR Risk Score Snapshot as of 19th July 2021

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