Moody's considers South Africa's investment rating

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The Moody's logo is shown outside the offices of Moody's Corporation in New York, New York, USA. The ratings agency has downgraded of South Africas debt rating to one level above junk status, putting further pressure on the economy.

JOHANNESBURG – Ratings agency Moody's has placed South Africa on review for a downgrade, a decision that was sparked by the recent cabinet resuffle.

Moody's says it is assessing the economic impact of the changes to leadership in key government institutions and it is expected to announce its rating on Friday.

READ: S&P downgrades SA to junk status

It currently rates the economy at two notches above sub-investment grade.

The decision comes hours after Standard and Poor’s downgraded the country's credit rating to junk status on Monday. It cited political instability as one of the reasons for the downgrade.

A third ratings agency, Fitch is yet to announce its decision.