Following downgrades by ratings agencies Standard &
Poor's ("S&P") and Fitch in
April 2017, Moody's cut South Africa's foreign and
local-currency ratings to investment grade Baa3 with a negative
outlook on Friday, 9 June 2017.
On 2 June 2017, S&P reaffirmed its 3 April 2017 decision to
downgrade South Africa's foreign currency debt to "junk
status" (BB+) (the colloquial term given to a non-investment
grade rating), and retained a negative outlook on South Africa,
saying that "weak economic growth and political uncertainty
continued to pose risks to the rating". Following shortly
after this decision, S&P further downgraded South Africa's
banks to non-investment grade (BB+). This was in line with its
rating of the country, as banks cannot be rated higher than the
country's foreign currency sovereign credit rating
"because of the likely direct and indirect influence of
sovereign distress on domestic banks' operations, including
their ability to service foreign currency
