S&P gives Old Mutual notes zaA+

S&P Global Ratings said it assigned its zaA+ South Africa national scale issue rating to the deferrable floating-rate subordinated note to be issued by life insurer Old Mutual Life Assurance Co. (South Africa) Ltd., (Omlacsa).

“To arrive at the issue rating, we first apply a one-notch downward adjustment to the BB global scale rating on Omlacsa to account for 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 to reflect the note's subordination. As a result, we rate the deferrable subordinated note zaA+, four notches below the zaAAA long-term national scale rating,” S&P said in a press release.

The proceeds are expected to be used for general corporate purposes.

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