S&P rates Sanlam debentures zaAA-

S&P said it assigned its zaAA- South African national scale rating to Sanlam Life Insurance Ltd.’s planned unsecured deferrable subordinated notes under its South African rand (ZAR) 6 billion note program.

“Under our methodology for rating such issues, we apply a one-notch downward adjustment to the national scale ratings on the issuer to account for coupon payment risk on the debt, and then we deduct another two notches from the national scale rating 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, Sanlam Life,” the agency said in a press release.

The company plans to use the proceeds for general corporate purposes.

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