S&P affirms Sasol

Standard & Poor's said it affirmed its BBB+ long-term and A-2 short-term foreign currency corporate credit ratings on Sasol Ltd. in the Republic of South Africa (foreign currency BBB+/stable/A-2, local currency A+/stable/A-1), following the announced black economic empowerment ownership deal.

The outlook is stable.

The agency said that the affirmation reflects the fact that the announced ZAR 17.9 billion BEE ownership deal can be accommodated within the current ratings, even if Sasol's debt is expected to increase by ZAR 9 billion as a result.

According to S&P, such reduced flexibility is, however, offset by lower country risk and a better relationship with the government, as demonstrated by the announcement in August that it would not impose a windfall tax on Sasol's synthetic fuel profits.

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