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"
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.