S&P assigns zaAA- to Old Mutual Life notes

S&P said it assigned its zaAA- South Africa national scale issue rating to the deferrable floating-rate subordinated notes to be issued by Old Mutual Life Assurance Co. (South Africa) Ltd. (BB/stable/--; zaAAA/--/zaA-1+).

The company will use the proceeds for general corporate purposes.

“Under our methodology for rating these issues, we apply a one-notch downward adjustment from the national scale ratings on the issuer to account for coupon payment risk on the debt, and another two notches 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,” S&P said in a news release.

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