S&P rates South Africa note BBB+

Standard & Poor's said it assigned its BBB+ foreign currency senior unsecured debt rating to the upcoming dollar-denominated note, maturing in 2022, to be issued by the Republic of South Africa (foreign currency, BBB+/stable/A-2, local currency, A+/stable/A-1) on or around May 30.

The note is to be issued in exchange for six securities with maturities between 2008 and 2017, the agency said, adding that noteholders have the option of exchanging their holdings for cash.

There will be no debt impact, with the transaction part of South Africa's active debt management strategy to refinance high coupon and short-dated debt, S&P added.

Efforts to extend government maturities have contributed to a decline in the country's external debt service to 26% of current account receipts in 2006, from 36% in 2001, this is expected to fall further to 22% in 2008, the agency said.

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