S&P cuts Rand Water

Standard & Poor's said it lowered South African utility Rand Water's long-term local currency rating to A from A+ and revised the outlook to stable from negative.

S&P said it affirmed Rand Water's BBB+ long-term foreign currency corporate credit rating and zaAAA long-term South Africa national scale rating.

The rating actions follow similar actions on the Republic of South Africa (foreign currency BBB+/stable/A-2; local currency A/stable/A-1) on Jan. 25.

The ratings on Rand Water are based on an equalization with those on the Republic of South Africa, reflecting the "almost certain" likelihood that the South African government would provide timely and sufficient extraordinary support to Rand Water in the event of financial distress, S&P said.

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