In a research report published on June 10, 2019, Moody’s lowered South Africa’s 2019 economic growth forecast by 0.3% to 1%.  

"The quarterly decline, the largest in 10 years, is credit negative for the Government of South Africa‘s (Baa3 stable) revenue and policy options…The first-quarter contraction presages low growth in the year as a whole," Lucie Villa, Moody’s lead sovereign analyst for South Africa, wrote in the report.  

On June 4, 2019, Statistics South Africa (Stats A) announced that in Q1, 2019, the country recorded its worst contraction in the last ten years (-3.2%).

Let’s note that Moody’s the only one of the three main rating agencies to maintain South Africa in the "investment grade" category. In November 2019, it will review the country’s sovereign risk. A new degrading of South Africa’s sovereign rating may spur massive sell-off of rand-denominated bonds.