Moody’s South Africa Unit to Exit Regulatory Framework After Deregistration Notice

Moody’s South Africa Unit to Exit Regulatory Framework After Deregistration Notice. South Africa’s financial regulators have confirmed that Moody’s Investor Services South Africa will be deregistered as a recognised credit rating agency, following a formal decision communicated by the Financial Services Conduct Authority and the Prudential Authority.

The move comes after Moody’s Investor Services South Africa voluntarily renounced its status as an eligible External Credit Assessment Institution. The FSCA issued its notice on 16 April 2026, confirming that the agency’s registration under the Credit Rating Services Act has been cancelled.

Moody’s has maintained a long-standing presence in South Africa, having assigned a sovereign credit rating to the country since 1994 and establishing local operations in 2003. Its South African unit has provided credit ratings, research, and credit risk analysis, while reporting into the group’s broader regional structure.

The agency’s registration as a credit rating provider was originally approved on 6 May 2014 by the former Financial Services Board. This recognition enabled banks to use ratings issued by Moody’s Ratings South Africa for regulatory purposes, including the calculation of risk-weighted assets.

Since 2020, the agency has issued ratings covering government-related entities, municipalities, and associated debt instruments. However, regulators have now confirmed that the company will no longer hold recognised status within the country’s regulatory framework.

Despite the deregistration, transitional arrangements have been introduced. The Prudential Authority has advised banks that they may continue to use Moody’s Ratings South Africa’s external credit ratings for a period of 24 months. This means the derecognition will only take full effect on 16 April 2028.

During this period, banks will continue mapping exposures to the agency’s ratings in line with existing regulations. After the transition window, the Prudential Authority is expected to update its directives regarding eligible rating institutions.

Regulators noted that Moody’s must inform all rated entities and issuers of its deregistration, marking a shift in how credit ratings from the agency will be treated within South Africa’s financial system.