S&P rates Liberty Group notes zaAA

S&P said it assigned a zaAA South Africa national scale issue ratings to the two unsecured deferrable subordinated notes to be issued by Liberty Group Ltd. (South Africa national scale zaAAA/--zaA-1+).

The company will use the proceeds for general corporate purposes.

Under its methodology for rating such issues, the agency said it applies a one-notch downward adjustment to the global scale ratings on the issuer for deferability, and another one to the resulting national scale rating for subordination.

“For deferability we selected the higher of the two options of national scale ratings, reflecting Liberty's stronger credit quality when compared with most of the other rated entities at a similar rating level,” S&P said in a news release.

“As a result, we rate the proposed notes two notches below our zaAAA South Africa national scale rating on the issuer, Liberty. Any potential rating action on the global scale sovereign rating on South Africa could have a multiple-notch effect on our national scale issue ratings on Liberty.”

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