S&P gives Old Mutual notes zaA+

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

To arrive at the issue rating, the agency said it applied a one-notch downward adjustment to the BB global scale rating on Omlacsa to consider the coupon payment risk on the notes.

“From this, we derive a national scale rating of zaAA using our mapping specification. This captures both the coupon payment risk and Omlacsa'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 long-term national scale rating on Omlacsa,” S&P said in a press release.

The company will use the proceeds for general corporate purposes.

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