The Minister of the Department of Water and Sanitation South Africa, Mr Senzo Mchunu, is pleased with the newly reconfigured uMngeni-uThukela Water’s National Long-Term rating at ‘AA+’, by Fitch Ratings.
uMngeni-uThukela Water is an entity of the Department of Water and Sanitation, that came about following the reconfiguration of uMngeni-uThukela Water and Mhlathuze Water and is tasked to provide services to the whole of the Kwa-Zulu Natal province.
Reputable credit ratings agency, Fitch Ratings, reaffirmed uMngeni-uThukela Water’s AA+ rating while noting that the utility still remained on solid footing and on course to meeting its mandate, despite the recent reconfiguration of uMngeni-uThukela Water and Mhlathuze Water. The agency further detailed the key rating drivers and provided insight as to what would negatively affect the rating, stating the following: “Fitch could revise the Outlook to Negative if significant water losses and further delays of infrastructure investments constrain water supply and remain a key risk without proactive mitigating measures by management and the Department of Water and Sanitation”.
In congratulating the entity, Minister Mchunu had the following to say: “This is indeed a great accomplishment by uMngeni-uThukela Water, despite the reconfiguration which was concluded recently. We do take note of the warnings by Fitch Ratings and as a Department, we want to assure Fitch and the public that these issues are receiving our focused attention and we will continue to support the entity, as well as the newly appointed 12-member Board as they service the people of Kwa-Zulu Natal. We want to get to a point where all our entities are model entities and uMngeni-uThukela is on the right track. I would like to urge uMngeni-uThukela Water to keep it up!”
