MAPPING TABLE
S&P alters rating scale for bond issuers
Bond issuers will have their credit ratings adjusted under a ‘global-to-national scale mapping’ process
Credit ratings agency S&P Global Ratings has adjusted its rating scale for bond issuers in SA. South African insurers, financial institutions, the public sector, state-owned entities and corporates will have their credit ratings adjusted slightly this week in a process called global-to-national scale mapping. Rand Merchant Bank credit analyst Elena Ilkova said: "The downgrade of SA’s sovereign rating in April 2017 triggered the predictable downgrade of South African issuers on the global scale. However, at the time, S&P did not adjust the global-to-national scale mapping table, which led to a large number of negative ratings actions on the national scale." When Fitch Ratings and Moody’s Investors Service downgraded the sovereign, their mapping tables were immediately adjusted, which limited the effect on the national scale ratings changes, Ilkova said. Changes were expected to 90% of the bond issuers. Ilkova said 65% of all ratings would be raised by three notches, 15% by more than ...
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