Rand falls as South Africa downgraded to 'junk'

Amid political upheaval

Ratings agency S&P Global has cut South Africa's credit rating to junk status, exacerbating falls in the rand and prompting the region's banking shares and government bonds to dive.

S&P lowered its credit rating on South African government debt from BBB- to BB+, making the debt non-investment grade, otherwise known as "junk", as it said political upheaval, including President Jacob Zuma's (pictured) recent sacking of finance minister Pravin Gordhan late on Thursday, was "endangering the economy" according to the BBC. The ratings agency also raised concerns over government debt, and the risk and expense of supporting state energy firm Eskom. Zuma's decision to dismiss Gordhan led to heavy criticism on Friday, and the rand fell 4% before the weekend. Following t...