CAPE TOWN - Ratings agency Moody’s has downgraded Steinhoff International by four notches.
The agency also said that Steinhoff International is in review and may face another downgrade.
The reason for the downgrade was due to uncertainties and implications for Steinhoff’s liquidity.
On Tuesday night CEO Markus Jooste resigned amid allegations of accounting fraud.
Since Jooste’s resignation the company has lost close to 80% of its value on the JSE.
On Thursday Finance Minister Malusi Gigaba threw his weight behind regulatory investigations into the Steinhoff International scandal, while the JSE announced a probe into the retailer.
Gigaba said he had requested the Financial Services Board, Public Investment Corporation, and the Government Employees Pension Fund to provide him with a report on the extent of exposure for retirement funds.
“The minister expects that this report will give assurances that the interests of the shareholders are protected, including their retirement and savings funds,” said Gigaba.
Gigaba said he supported the FSB’s independent investigation into possible false and misleading reports in terms of section 81 of the Financial Markets Act, as well as any related abuses regarding Steinhoff.
On Friday Steinhoff International's share price dropped to under R6. On Tuesday the share price was R46.25.