Ratings agency Moody's said on Thursday that the South African economy's slide into recession in the second quarter would exacerbate the fiscal and monetary challenges the country faces, calling weaker-than-expected economic data "credit negative".
Data showed on Tuesday that the South African economy contracted 0.7% in the second quarter.
The ratings agency is the last of the "big three" international agencies to have South Africa's long-term foreign-currency debt in investment grade.