Ratings Agency Moody's on Friday withdrew Drakenstein Municipality's A3.za rating for what it termed “its own business reasons”.
The agency did not elaborate on why the rating was withdrawn‚ but referred to its policy on withdrawal. This policy encompasses ten reasons for a withdrawal‚ ranging from an internal clerical error to incorrect‚ insufficient or otherwise inadequate information being provided. It also mentions bankruptcy‚ debt restructuring‚ write-downs or reorganisations as potential issues in a withdrawal of a rating.
At the time of withdrawal‚ the rating carried a stable outlook.
Drakenstein is the second largest economic region of the Western Cape‚ following the City of Cape Town and includes the towns of Paarl and Wellington. The municipality is home to a population of approximately 218‚000 and displays relatively low unemployment levels around 20%.
