What exactly does junk status mean?

What exactly does "Junk Status" mean?

"In our opinion, the executive changes initiated by President [Jacob] Zuma have put at risk fiscal and growth outcomes"

Standard Poors

Ratings agency Standard & Poor's (S&P) has downgraded the country's sovereign credit rating to junk status, citing political uncertainty as the main reason.

S&P lowered its long-term foreign currency sovereign credit rating on the Republic of South Africa to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB'.

ALSO READ: S&P downgrades South Africa to junk status

But what exactly does that mean for us?

Martin Bester talked to economist Dawie Roodt on the impact of junk status for South Africa.

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