The ratings on Buffalo City Metropolitan Municipality’s (“BCMM’, “the City” or “the Metro”) balance its conservative financial profile, against operating performance and debtors’ collection pressures exacerbated by the coronavirus pandemic. Cognisance is taken of BCMM’s status as a metropolitan municipality, although its economic base is small and less diverse than some of the larger metros. In terms of national GDP, BCMM contributes around 1.6%, with the Metro’s longer term average growth rate converging with weak national metrics given the challenging economic environment.
BCMM is located in the Eastern Cape Province and includes East London, Bhisho and King Williams Town, as well as the townships of Mdantsane and Zwelitsha within the corridor of rural areas. Following the local government elections held in August 2016, certain areas of the GreitKei, Amahlati and Ngqushwa municipalities were incorporated into BCMM. This covers approximately 2,515km2 with 68km of coastline. Economically, the motor industry plays an integral role, with East London well positioned for the exporting of vehicles.
|Issue Name||Rating||Country||Rating Published|
|--||Short Term rating: A1(ZA); Outlook: Stable||South Africa||31-03-2021 0:00:00|
|--||Long Term Rating: A(ZA); Outlook: Stable||South Africa||31-03-2021 0:00:00|