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Less Predictable South Africa Policy May See Moody's Rating Cut

Parliamentary officials prepare the chamber for voting prior to an unsuccessful vote of no-confidence against President Jacob Zuma on August 8, 2017 in the South African National Assembly in Cape Town. South Africa President Jacob Zuma on August 8 survived a parliamentary vote of no confidence, as ruling ANC party lawmakers stuck by their leader despite growing divisions and fierce criticism of his rule. Baleka Mbete, the Speaker of parliament, announced that the motion had been defeated, with 177 votes supporting and 198 votes against it. / AFP PHOTO / POOL / MARK WESSELS (Photo credit should read MARK WESSELS/AFP/Getty Images)

Parliamentary officials prepare the chamber for voting prior to an unsuccessful vote of no-confidence against President Jacob Zuma on August 8, 2017 in the South African National Assembly in Cape Town. South Africa President Jacob Zuma on August 8 survived a parliamentary vote of no confidence, as ruling ANC party lawmakers stuck by their leader despite growing divisions and fierce criticism of his rule. Baleka Mbete, the Speaker of parliament, announced that the motion had been defeated, with 177 votes supporting and 198 votes against it. / AFP PHOTO / POOL / MARK WESSELS (Photo credit should read MARK WESSELS/AFP/Getty Images)

Photographer: MARK WESSELS/AFP/Getty Images

South Africa’s credit rating may be cut to junk if its policies become “even less predictable” or shift in a way that could undermine the economy, Moody’s Investors Service said.

Policy uncertainty and political turmoil have increased in the last two months as the nation’s anti-graft ombudsman instructed lawmakers to change the central bank’s mandate, the mines minister published new regulations that the industry says undermine investment and President Jacob Zuma’s defeat of a no-confidence motion in parliament weakened the rand. South Africa entered a recession in the first quarter.