S&P gives Santam notes zaA+

S&P assigned its zaA+ national scale rating to Santam Ltd.'s subordinated notes under its South African ZAR 4 billion note program. The insurer’s global rating is BB.

“Under our methodology for rating such issues at national scale level, we apply a one-notch downward adjustment to the global scale rating to reflect the coupon payment risk on the debt. We then use our national scale mapping for South Africa to arrive at a national scale rating of zaAA, which reflects the stable outlook on the sovereign. We then deduct another two notches to reflect the subordination. As a result, we rate the deferrable subordinated notes zaA+, four notches below the zaAAA national scale rating on Santam,” the agency noted regarding the rating.

Proceeds are being used to refinance existing notes.

The outlook is stable

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