CAPE TOWN, April 30 (Xinhua) -- Global ratings agency Moody's subsidiary in South Africa is being deregistered in the country, local media reported on Thursday.

Media reports quoted a notification issued last week by South African Reserve Bank's Prudential Authority (PA) as saying: "The PA intends to derecognize Moody's Investors Service South Africa (Pty) Ltd (Moody's Ratings-SA) as an eligible external credit assessment institution (ECAI)."

The notification followed another notice released on April 16 by the Financial Sector Conduct Authority (FSCA), South Africa's market conduct regulator of financial institutions, which cancelled Moody's registration as a credit rating agency in the country.

"Moody's Ratings-SA informed the Authority that it no longer wants to be registered as a credit rating agency in terms of the Act and that it is renouncing its registration. The Authority therefore cancelled the registration of Moody's Ratings-SA," the FSCA said in the notice.

"After cancellation of its registration, Moody's Ratings-SA will no longer be allowed to perform credit rating services or issue a credit rating in the Republic," it added.

According to the PA's notification, the derecognition of Moody's Ratings-SA as an eligible ECAI in South Africa is effective 24 months from the date of publication of the FSCA's notice.

"Accordingly, banks may continue to use the external credit ratings issued by Moody's Ratings-SA until the end of this 24-month period," the PA said.

No reason for the deregistration of Moody's Ratings-SA was immediately provided.

Local media reports said the move would not affect South Africa's sovereign credit rating, which continues to be assigned by Moody's global entity. ■