South African companies are less exposed to currency volatility than those in other emerging markets, such as those in Turkey, due to the country's deep and well-developed rand debt capital market which has limited their need to use foreign currency debt, Moody's Investors Service said in a report today.

Moody's has changed its outlook on the South African banking system to stable from negative, reflecting the expected resilience of the banks' financial metrics and creditworthiness over the next 12-18 months, despite weakening operating conditions, Moody's Investors Service said in a report today.

South Africa's central bank left its benchmark repurchase rate at 6.50 percent but noted the deteriorating outlook for inflation and raised its implied path of policy rates to five rate hikes by the end of 2020 from four hikes.

Fitch Ratings has affirmed South Africa's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook.