Shares in Steinhoff, the owner of Poundland, have lost around 90 per cent of their value in a week after the South Africa-listed firm plunged for the third straight day.
The losses started on Wednesday after the company's chief executive quit amid news of an accounting probe.
Markus Jooste resigned after new information came to light "regarding irregularities requiring further investigation". Steinhoff appointed PwC to carry out an independent investigation.
The company's stock closed at 5,581 rand last Friday. This morning, its shares were down nearly 50 per cent on the day at 530 rand.
Moody's yesterday downgraded Steinhoff reflecting the "uncertainties and implications for the company's liquidity and debt capital structure arising from an announcement by Steinhoff's supervisory board on 6 December 2017".
"Given that allegations of accounting irregularities were raised and rebutted in August 2017 and again in November 2017 it calls into question the quality of oversight and governance at Steinhoff," Moody's said.
Steinhoff bought Poundland last year in a £610m deal.