# South Africa Cut to Junk for the First Time Since 2000 - Bloomberg

> S&P cut South Africa's foreign-currency rating to BB+, its highest junk grade, after President Zuma's cabinet purge, and kept a negative outlook. The local-currency rating was cut to BBB-, still investment grade, and Moody's placed its rating under review for a downgrade.

- Date: 2017-04-03 · published 2017-04-03T12:00:00.000Z
- Category: policy · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/71799-south-africa-cut-to-junk-for-the-first-time-since-2000-bloomberg
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

The downgrade raises the cost of sovereign borrowing and signals further risk of cuts. A weaker rand would raise the cost of imported feed inputs.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2017-04-03/south-africa-cut-to-junk-first-time-since-2000-after-zuma-purge

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