Research Update: Israel Electric Corp. Ltd 'BB+' Rating Affirmed On Resolution Of Liquidity Squeeze; Off Watch; Outlook Stable Sep 11

  • ID: 1921723
  • September 2011
  • Region: Israel
  • Standard & Poors
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We believe the Israeli government's proactive steps to support Israel's electricity monopoly Israel Electric Corp. Ltd. (IEC), by providing tax incentives and other measures of support, throughout a period of financial distress caused by the disruptions in Egyptian gas supply, have resolved IEC's liquidity squeeze. We note a possible improvement in the relationship with the regulator as well as active steps the company is currently taking to improve its stand-alone liquidity position. We are affirming our 'BB+' foreign currency corporate credit rating on IEC and removing it from CreditWatch negative. The stable outlook reflects our opinion that IEC's stand-alone credit profile is unlikely to improve materially in the near term, due to uncertainty over market reform, a complex tariff-setting mechanism...

Companies mentioned in this report are:
- Israel Electric Corp. Ltd.

Action: Affirmed

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

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- Israel Electric Corp. Ltd.

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