# S&P cuts South Africa debt score to junk | The National

> S&P Global cut South Africa's local-currency debt one step to BB+, below investment grade, and lowered its foreign-currency debt to BB. Moody's kept its Baa3 ratings but placed them on review for possible downgrade. Citigroup warned that a local-currency downgrade could trigger outflows of up to 100 billion rand.

- Date: 2017-11-25 · published 2017-11-25T12:00:00.000Z
- Category: macro · region South Africa · magnitude high
- Page: https://feedsoft.ai/events/68288-s-and-p-cuts-south-africa-debt-score-to-junk-the-national
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

A junk rating on local-currency debt could force large bond sales by index-tracking funds, weakening the rand and raising the cost of dollar-denominated feed imports. The risk is concentrated in the rand and bond markets.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- thenationalnews.com: https://www.thenationalnews.com/business/economy/s-p-cuts-south-africa-debt-score-to-junk-1.678590

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