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S&P Global cut South Africa's local-currency debt to sub-investment grade and lowered its foreign-currency debt one notch deeper into junk on November 24. Moody's kept both ratings at Baa3 but placed them on review for downgrade, pending the ANC conference and the February budget.
The rand fell about 2% after the S&P decision and then recovered.
A Moody's downgrade could trigger index exclusion and large forced bond selling, which would pressure the rand and raise import costs for feed buyers. Until the review concludes, the currency faces event risk.
ig.comShaun MurisonNov 27, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
