Israel Electric Corp. Ltd 'BB+' Rating Affirmed On Resolution Of Liquidity Squeeze; Off Watch; Outlook Stable Sep 11
- Language: English
- Published: September 2011
- Region: Israel
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.
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Israel Electric Corp. Ltd.