Important international group pulling out of South Africa
The Financial Services Conduct Authority (FSCA) and the Reserve Bank’s Prudential Authority (PA) have given notice that Moody’s Investor Services South Africa is being deregistered in the country.
Moody’s Investor Service South Africa (MIS SA) officially renounced its registration as an eligible External Credit Assessment Institution (ECAI), leading to a notice from the FSCA on 16 April 2026.
Moody’s has a long history in South Africa, having assigned a sovereign rating to South Africa since 1994.
Over the decades, the group has been closely involved in the development of the South African debt capital markets and established a presence in the country in 2003.
MIS SA is a local operation for the wider group, reporting to a regional head of the EMEA region. It is a provider of credit ratings, research and credit risk analysis in South Africa.
MIS SA’s application to be registered as a credit rating agency was approved by the then Financial Services Board on 6 May 2014.
The recognition allowed South African banks to use credit ratings issued by MIS SA—also referred to as Moody’s Ratings SA—for risk-weighting purposes.
Since 2020, MIS SA has maintained credit ratings on a range of government-related issuers, municipalities, and their debt obligations.
According to the FSCA, MIS SA’s registration under the Credit Rating Services Act has now been cancelled.
However, the authority noted that the group’s credit ratings may still be used for regulatory purposes for an extended period.
This was detailed by a subsequent notice from the PA to South Africa’s banks, saying that they may continue to use the external credit ratings issued by MIS SA for 24 months.
The derecognition of Moody’s Ratings South Africa as an eligible ECAI in South Africa is effective 24 months from the date of publication of the FSCA’s notice (ie, to 16 April 2028).
“After [this period], the PA intends to issue an updated Directive on Matters relating to eligible ECAIs…to effect the derecognition of Moody’s Ratings SA.”
The FSCA explained in its initial notice that MIS SA informed the authority that it no longer wanted to be registered as a credit rating agency in South Africa.
The Prudential Authority was consulted by the FSCA before the authority issued the deregistration.
Moody’s Ratings SA must now also notify all rated entities and issuers that it is no longer registered as a credit rating agency in South Africa.
According to the PA, South Africa is among the Basel Committee on Banking Supervision member jurisdictions that permit the use of external credit ratings for determining a bank’s minimum required regulatory capital and reserve funds for credit risk.
The external credit ratings that are allowed to be used for capital purposes must be issued by credit rating agencies which are recognised as ECAIs by national supervisors.
Banks are required to map their exposures to ratings issued by eligible ECAIs, in accordance with the country’s regulations.
Moody’s Ratings South Africa is no longer one of these.
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