Minister of Water and Sanitation, Pemmy Majodina, has commended uMngeni-uThukela Water for its recent positive AA+ rating by Fitch Ratings.
Majodina, attributed prudent financial management and strong leadership at the KwaZulu-Natal water utility.
uMngeni-uThukela Water said that this is the second year running that the Water Board has scored a AA+ credit rating since its reconfiguration in 2023.
“In granting the AA+ rating to uMngeni-uThukela Water, the London-based international ratings agency noted that the water utility had a stable financial outlook.”
uMngeni-uThukela Water added that Fitch also indicated that the water utility remained on course to meeting its borrowing limits and loan repayments for the 2024/25 financial year.
“A higher rating means that, should it need to do so, uMngeni-uThukela can borrow at a lower interest rate which augurs well for financing large scale water infrastructure development and maintenance projects.”
Majodina added that she still was concerned that the high levels of water loss and infrastructure implementation delays pose a risk for uMngeni-uThukela Water’s long term credit rating.
“While we welcome the positive credit rating of uMngeni-uThukela Water by Fitch Ratings, it is extremely concerning that among the risks that could pose a risk for the future sustainability of the organisation is high water losses at municipal levels. This is one area that continues to be a major concern for us as the Department of Water and Sanitation and which is receiving our immediate attention.”
The report represents an expression of confidence in the ability of the South African government and the Department of Water and Sanitation to ensure the ongoing financial viability of the water utility, said Majodina.
The Mercury