S&P upgrades Rand Water

Standard & Poor's said it raised its long-term local currency corporate credit rating on the South African regional water board, Rand Water, to A+ from A and affirmed the BBB+ long-term foreign currency corporate credit rating.

The outlook on both ratings is stable.

The upgrade reflects improvements in Rand Water's gross financial profile following the repayment on Sept. 30 of about 50% of the company's outstanding debt from its cash reserves.

S&P said Rand Water's strong business profile is derived from its regional monopoly and strong operations, as well as from favorable regulation. But several factors offset these strengths, including customer concentration, exposure to drought conditions and volume risk, S&P said.

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