Elad: The main reason for the downgrade is the multibillion Plaza casino project in Las Vegas.
Standard & Poor's Maalot Ltd. has downgraded the bonds of Yitzhak Tshuva's private North American real estate company, Elad Properties three grades to A. Elad is the latest real estate company to suffer a downgrade.
Tshuva and Maalot CEO Dorit Salinger met a few days ago to discuss the issue.
Elad said that the main reason for the downgrade is the company's multibillion Plaza casino project in Las Vegas, a joint venture with Nochi Dankner's Discount Investment Corporation (TASE: DISI) and Property and Building Ltd. (TASE: PTBL). Elad said, "Elad will have to shortly repay a $312 million loan. Maalot says that if the loan repayment is deferred, it will review the rating."
Elad CFO Ronnie Ben-Dov said, "We respect the over-caution of Maalot in view of developments in the global real estate market, although we do not agree with the decision. We believe that once the loan issue for the Las Vegas project is settled, the rating will soon be raised."
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2008
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