OREANDA-NEWS. Fitch Ratings has affirmed South Africa-based Sanlam Capital Markets (Pty) Limited's (SCM) National Long - and Short-Term Ratings at 'A+(zaf)' and 'F1(zaf)', respectively, and Support Rating at '2'. The Outlook on the National Long-Term Rating is Stable. Fitch has simultaneously withdrawn the ratings for commercial reasons.

Fitch has also affirmed SCM's immediate parent company, Genbel Securities (Pty) Limited's (Gensec), National Long-Term rating at 'A+(zaf) with Stable Outlook and National Short-Term rating at 'F1(zaf)'. Gensec's ratings have also subsequently been withdrawn. A full list of rating actions is at the end of this rating action commentary.

SCM is a non-bank financial institution ultimately owned by Sanlam Limited (Sanlam; AA-(zaf)/Stable), the holding company of one of South Africa's largest life insurance companies. SCM primarily acts as one of Sanlam's treasury functions but also offers capital markets products, brokerage and advisory services to third-parties outside the Sanlam group.

KEY RATING DRIVERS

NATIONAL RATINGS, SUPPORT RATINGS AND GUARANTEED OBLIGATIONS

SCM's and Gensec's ratings are based on our assessment of institutional support available from Sanlam, which considers both Sanlam's propensity and ability to support. This results in a one-notch differential between SCM's/Gensec's and Sanlam's National Ratings.

SCM's guaranteed obligations cover most of SCM's trading creditors and benefit from a direct guarantee from Sanlam. The guaranteed obligations are equalised with Sanlam's National Ratings

RATING SENSITIVITIES

NATIONAL RATINGS, SUPPORT RATINGS AND GUARANTEED OBLIGATIONS

Not applicable

The rating actions are as follows:

Sanlam Capital Markets (Pty) Limited

National Long-Term Rating: affirmed at 'A+(zaf)'; Outlook Stable and withdrawn

National Short-Term Rating: affirmed at 'F1(zaf)' and withdrawn

Support Rating: affirmed at '2' and withdrawn

SCM obligations guaranteed by Sanlam Limited

National Long-Term Rating: affirmed at 'AA-(zaf)' and withdrawn

National Short-Term Rating: affirmed at 'F1+(zaf)' and withdrawn

Genbel Securities (Pty) Limited

National Long-Term Rating: affirmed at 'A+(zaf)'; Outlook Stable and withdrawn

National Short-Term Rating: affirmed at 'F1(zaf)' and withdrawn

Support Rating: affirmed at '2' and withdrawn