Fitch rates Sanlam Life notes A+(zaf)

Fitch Ratings said it assigned a final A+(zaf) rating to Sanlam Life Insurance Ltd.'s issue of subordinated debt securities of ZAR 1.16 billion.

The assignment of the final rating follows the completion of the bond issuance and receipt of documents conforming to the information previously received, Fitch said.

The final rating is the same as the expected rating assigned in July, the agency said.

The securities have a 10-year maturity, callable after a period of five years and will pay an 8.7% fixed-coupon semi-annually. The notes include a mandatory interest deferral feature, which is triggered when the company's level of regulatory minimum capital requirement is breached, Fitch said.

The redemption of Sanlam's outstanding ZAR 1.16 billion 9.54% subordinated bond callable Aug. 15, 2013 with a maturity date of Aug. 15, 2018 and the issuance of the new bond occurred on the same day, meaning financial leverage is unchanged at 8% as of the end of 2012, the agency said.

Fitch said it considers an upgrade unlikely in the near term.

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