How will a potential ratings downgrade affect me?

Nov 21, 2019 | Markets

There has been much speculation for some time that South Africa could be downgraded by Moody’s to sub-investment grade or “junk”, despite a recent reduction in the likelihood of the actual full downgrade announcement occurring on 1 November as many anticipate. The Moody’s rating has been pertinent in that it is the only one of the three major ratings agencies that has not yet downgraded SA’s foreign rating. In the brief overview below we examine the perceived risk of a downgrade and pertinently also briefly discuss what the likely potential impact (if any) would be on end consumers and clients.