# What the downgrade and Covid-19 pandemic mean for SA markets

> Investec says Moody's downgrade of South Africa to sub-investment grade came as the country faces the Covid-19 pandemic and a global shutdown. The analysis expects the downgrade to weigh on the local bond market and the rand, and notes the exit from the Russell/FTSE bond index has been postponed to the end of April.

- Date: 2020-03-31 · published 2020-03-31T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/54409-what-the-downgrade-and-covid-19-pandemic-mean-for-sa-markets
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Continued bond outflows and index-driven selling are likely to keep the rand under pressure, which lifts the dollar cost of dollar-priced imports for South African buyers.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- investec.com: https://www.investec.com/en_za/focus/economy/what-the-downgrade-and-covid-19-pandemic-mean-for-sa-markets.html

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