# It’s as if SA junk downgrade never happened for foreign investors

> South Africa's local-currency borrowing costs have fallen below any level seen in the five years before Moody's removed its last investment-grade rating on March 27. Foreign investors are returning to the bond market after a record selloff early in 2020. The rand has rebounded, with risk premia back to pre-downgrade levels.

- Date: 2020-06-12 · published 2020-06-12T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/52913-it-s-as-if-sa-junk-downgrade-never-happened-for-foreign-investors
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Stronger foreign capital inflows support the rand and reduce the local cost of imported feed inputs. The sovereign's fiscal risks remain, and the rand is still driven mainly by global recovery.

## Read by commodity

- USDZAR: neutral

## Sources

- biznews.com: https://www.biznews.com/briefs/sa-junk-downgrade-foreign-investors

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.