Fitch rates Old Mutual perpetual preferreds BBB+

Fitch Ratings said it assigned Old Mutual plc's proposed issue of sterling denominated perpetual preferred callable securities an expected rating of BBB+.

The securities are expected to raise a minimum of £200 million and the proceeds will be used to refinance senior debt, including $636 million of maturing convertible debt in May 2005 (assuming conversion does not take place, given the levels of the current share price and the current dollar-sterling exchange rate).

Fitch said the ratings are supported by Old Mutual's dominant position in the South African financial services market.

Its balance sheet position remains strong, while the U.S. life and asset management businesses continue to provide a source of diversity, Fitch noted

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