Moody's: Sasol long-term rating Aa3.za

Moody's Investors Service said it assigned Aa3.za long-term and Prime-1.za short-term South African national scale ratings to Sasol Ltd., the primary oil and gas company of South Africa.

The outlook is stable.

Moody's said its ratings on Sasol reflect the company's solid track record of technological expertise in the production of reliable, high-margin and competitive liquid fuels from coal and increasingly from gas to supply the South African domestic market. Ratings are also supported by Sasol's strong domestic market position, supplying more than 40% of the country's fuel requirement, as well as by Sasol's extensive integration across its production chain, given its coal reserves and enhanced by the completion of a pipeline to Mozambique gas fields.

At the same time, Moody's noted that Sasol's ratings are constrained by the relatively high cyclicality associated with most of its petroleum and chemicals products, particularly among some of its lower margin chemical operations, as well as the exchange rate volatility from high exposure to U.S. dollar-denominated markets.

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