Fitch Ratings Agency has downgraded South Africa to junk status.
The move comes on a day of unprecedented country-wide protests calling for President Jacob Zuma to resign, following his cabinet reshuffle.
The reshuffle was followed by Standard and Poors downgrading South Africa to junk status.
Fitch said the downgrade of South Africa's Long-Term Foreign- and Local-Currency Issuer Default Ratings, reflects their view that recent political events, including a major cabinet reshuffle, will weaken standards of governance and public finances.
Fitch says in its view, the cabinet reshuffle is likely to result in a change in the direction of economic policy.
It says the reshuffle is likely to undermine, if not reverse, progress in the governance of State Owned Enterprises, raising the risk that their debt could migrate onto the government's balance sheet.
