S&P rates Santam notes zaA+

S&P said it assigned its zaA+ national scale rating to Santam Ltd.'s unsecured subordinated notes under its South African ZAR 4 billion note program. Santam’s global rating is BB

“Under our methodology for rating such issues at national scale level, we apply a one-notch downward adjustment to the global scale rating to reflect the coupon payment risk on the debt. We then use our national scale mapping for South Africa to arrive at a national scale rating of zaAA, which captures both the payment risk and Santam's stable credit profiles. We then deduct another two notches to reflect the subordination. As a result, we rate the deferrable subordinated notes four notches below the zaAAA national scale rating on the issuer (Santam),” the agency said in a press release.

The company will use the proceeds to refinance outstanding notes.

The outlook is stable.

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