It could get worse: See http://www.moneyweb.co.za/moneyweb-opinion/south-africa-the-runaway-train/ "But does the average investor fully understand the consequences of an investment downgrade? Does the average investment adviser? Or fund manager? Let me stick my neck out and make a forecast. A downgrade to junk status by two of the three major ratings agencies could wipe 20-30% off the market capitalisation of the JSE, drop the rand to R18-20 against the US dollar and force the Reserve bank to raise interest rates sharply. It might be forced into s*****ping the foreign investment allowance, seeing that the outflow of foreign investments (up to R24 billion in the third quarter) is busy spiking. Also this is just a matter of time if current trends continue. Two countries have had their credit ratings dropped to junk in recent times: Brazil and Russia. Go and have a look at what happened to their financial markets, currencies and domestic economies subsequent to the downgrades for a trailer of what could be".