S&P assigns Santam notes zaA+

S&P said it assigned its zaA+ national scale rating to the proposed unsecured subordinated notes issued by Santam Ltd. under its South African rand (ZAR) 4 billion note program.

“Under our methodology for rating such issues at the national scale level, we first apply a one-notch downward adjustment to the BB global scale rating on Santam to take into account the coupon payment risk on the debt. From this we derive the zaAA national scale rating using our mapping specification for South Africa. This captures both the payment risk and Santam’s stable credit profile. We then deduct two further notches from the resulting national scale rating to reflect the notes’ subordination. As a result, we rate the deferrable subordinated notes zaA+ four notches below the zaAAA national scale rating on Santam,” the agency said in a press release.

The company will use the proceeds for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.