NATIONAL NEWS - In a decision that has seen the rand plunge 2%, Standard & Poor’s Global has lowered South Africa sovereign credit rating to BB+ or junk status.
This is from BBB minus with money now set to become more expensive for the government to borrow.
The agency has cited political and institutional uncertainty, saying the country has a negative outlook.
Ratings agencies had warned South Africa that political risk could cause a downgrade to junk status.
S&p global has highlighted the executive changes initiated by President Jacob Zuma, saying these have put at risk - fiscal and growth outcomes.
It says a negative outlook reflects the view that political risks will remain elevated this year and that policy shifts are likely.
