Business organisation Business Leadership South Africa (BLSA) says Moody's downgrade of South Africa's debt rating to junk status will significantly impact the way the economy is defended through the Covid-19 crisis. The ratings agency on March 27 downgraded South Africa's sovereign credit rating to junk status, despite industry calls for the decision to be postponed until after the Covid-19 pandemic passes in South Africa, since it has frustrated economic reform efforts. Moody's downgraded the country's long-term foreign currency and local currency issuer ratings to Ba1 from Baa3, with a negative outlook. The Ba1 rating implied a significant credit risk. Financial institution Citadel chief economist Maarten Ackerman says the rating downgrade came as no surprise, since South Africa's fiscal metrics had been unsustainable for some time.