Moody’s relinquishes regulatory licence of South African subsidiary

Thursday 30 April 2026 - 12:00

Moody's has decided to give up the regulatory licence of its South African subsidiary, marking a strategic shift in how the global ratings firm operates in African markets.

The company stated that the move is aimed at strengthening its focus on cross-border investors and African issuers seeking access to international capital markets. Despite this change, Moody’s confirmed it will continue to rate South African entities through other international offices.

Regulators in South Africa have acknowledged the decision, noting that the subsidiary will no longer be registered as a credit rating agency under local legislation. The Financial Sector Conduct Authority confirmed that Moody’s voluntarily renounced its registration.

The Prudential Authority, which oversees banking regulation, has extended a transition period during which South African banks may continue using ratings issued by the local subsidiary for regulatory capital calculations. This extension has been set at 24 months to allow a smooth adjustment.

Authorities also indicated plans to eventually remove recognition of Moody’s South African entity as an approved external credit assessment institution. However, they emphasized that the broader regulatory framework remains unchanged.

Moody’s said it will maintain a strong presence in Johannesburg to support clients and manage relationships, in line with its strategy in other emerging markets. The agency highlighted its continued interest in Africa’s financial sector, pointing to long-term growth opportunities driven by expanding debt markets and investment needs.

The decision is not expected to affect South Africa’s sovereign credit ratings, which will continue to be assessed through Moody’s global operations.