S&P assigns zaAA- to Old Mutual notes

S&P said it assigned its zaAA- South Africa national scale issue rating to the five-year deferrable floating-rate subordinated note to be issued by Old Mutual Life Assurance Co. (South Africa) Ltd.

“Under our methodology for rating these issues, we apply a one-notch downward adjustment from the national scale ratings on the issuer to account for coupon payment risk on the debt, and another two notches to reflect the subordination. As a result, we rate the proposed notes zaAA-, three notches below our zaAAA South Africa national scale rating on the issuer,” S&P said in a press release.

The company is expected to use the proceeds, estimated to be about ZAR 641 million, for general corporate purposes.

The outlook is stable.

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