Fitch rates Old Mutual notes AA(zaf)

Fitch Ratings said it has assigned Old Mutual Life Assurance Co. (South Africa) Ltd.'s (AAA(zaf)/stable) proposed issue of subordinated debt securities an expected rating of AA(zaf)(exp).

The notes are rated two notches below the issuer’s national long-term rating to reflect their subordination and loss absorption features, in line with Fitch's notching criteria.

The agency said that the securities will be issued with a 10-year maturity, callable after a period of five to seven years and could be composed of both a fixed and floating coupon. The notes include a mandatory interest deferral feature, which is triggered when the company's level of regulatory minimum capital requirement is at risk.

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