Potch gets a plus on financial strength

Posted On Tuesday, 10 June 2003 02:00 Published by eProp Commercial Property News
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THE Potchefstroom city council has been given a clean bill of health, with CA Ratings, an affiliate of Standard and Poor's, assigning the council a longterm credit rating of zaA- and zaA2 in the short term.

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CA Ratings director Leon Claassen said yesterday the financial position of the city was strong, with a relatively low debt burden supported by low tax rates and tariffs for services, including water and electricity provision.

Total income growth had been stable and operating expenditures well controlled, resulting in operating surpluses over the past few years.

Cash flows from operations had been stable for a number of years.

Collection of outstanding debts was "above average", resulting in positive bank investment balances.

"Capital investments have been kept at manageable levels in the past and are expected to remain at these levels over the medium term.

"The city appears to be well managed by executives who are experienced in their field of specialisation," said Claassen.

Unemployment, however, remained high at 31%, although it remained lower than that of the province.Job creation and the decrease in poverty remained key objectives of the city.

He said the incidence of HIVAIDS was high and would exert increasing pressure on municipal health services' expenditure.

"Potchefstroom is well known for its educational and sporting facilities, housing more than five tertiary institutions and a number of sports academies.

"The economic base is moderately diversified with a number of light and heavy industrial firms," said Claassen.

Efforts were being made to expand industrial activities.

Last modified on Monday, 19 May 2014 10:17

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