Sources inform ''Globes'' that Maalot The Israel Rating Company Ltd. is reviewing its credit rating for Israel Electric Corporation (IEC) because of disputes over the company’s financial reports and the resignation of VP finance Avner Yehudai last week.
Maalot currently gives IEC an AA+ credit rating, after cutting the rating from AAA, the highest possible rating, in November 2006. That downgrade was prompted by uncertainty about IEC’s restructuring and its growing debts.
Yehudai resigned last week after refusing to sign the prospectus for the raising of up to NIS 10 billion, intended to finance the company’s development plan for the coming years, or clarifications to the prospectus relating to implementation of reforms and decisions by the Public Utilities Authority (Electricity).
IEC said that the Public Utilities Authority’s approval of a rate hike of 5%, which comes into effect in September, should improve the company’s financial situation, which should in turn improve its credit outlook.
Published by Globes [online], Israel business news - www.globes.co.il - on August 21, 2007
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