"ILDC completed a number of actions in
recent years that have improved the coverage and leverage ratios. In the next
two years a gradual improvement in coverage ratios is expected to be continued,
following actions to increase EBITDA and stability in financial expenses
Maalot indicates that implementation of the company's business plan, will enable
further improvement of the Company's financial position.
The credit rating company, Maalot S&P, raised today the rating of ILDC
from 'ilBBB+' to 'ilA-' 'with a stable outlook. The raise is due to a number of
actions taken by the Company in recent years, which led to continuous
improvement in its financial risk profile as reflected in improving coverage
ratios and leverage, such as an increase in NOI of major rental properties in
Israel and Poland, reducing administrative expenses, selling assets and
deleveraging, sales of assets which their process of maturity was completed and
are not part of the core businesses and continuing of improvement of the
Company's assets in Israel that will increase the capital base.
Maalot notes that the Company has carried out actions that have resulted in
increasing of cash flow including the sale of apartments in Poland and the sale
of a number of historical lands at market prices. In addition, ILDC has, in
recent years, refinanced expensive loans of over NIS 1.5 billion, which
resulted in reducing financial expenses.
As a result of these actions, Maalot estimates that, in so far as the
company will continue to implement its business plan to continue to perform
similar operations, there will be further improvement in its financial position.
Moreover, Maalot estimates that in the next two years a continuing gradual
improvement in coverage ratios is expected, following continuing actions to
increase the EBITDA and stabilize financial expenses. In addition, continuing
gradual improvement in leverage ratios is expected, due to actions to stabilize
the level of debt and increase capital base.
Maalot S&P also noted in its considerations, that "rating is
positively influenced by successful adoption of financial policy that is
committed to maintaining present leverage rate. The stable outlook reflects our
expectations for stability in the financial ratios and in the business risk
profile in the coming year. ILDC's policy of maintaining high cash balances
over a course of time, contributes to its financial flexibility. Also, ILDC enjoys
additional financial flexibility due to the great amount of lands it owns in
Israel, some of which are realized every year in accordance with its business