S&P rates Old Mutual notes zaA+

S&P said it assigned its zaA+ South Africa national scale rating to the unsecured deferrable subordinated notes to be sold by Old Mutual Life Assurance Co. (South Africa) Ltd.

“To arrive at the issue rating, we first apply a one-notch downward adjustment to the BB global scale rating on Omlacsa to take into account the coupon payment risk on the debt, and from this we derive the national scale rating of zaAA, using our mapping specification. This captures both the payment risk and Omlacsa’s stable credit profiles. 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 long-term national scale rating,” S&P said in a press release.

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