Uncertainty in Egypt leads to Ampal rating cut

Rating company Midroog cut its rating on Ampal's three series of bonds today.

Since the clashes in Egypt, which led to the ouster of President Hosni Mubarak, shares of Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) have been very volatile. That is due to its 12.5% ownership in Egyptian gas supplier EMG.

Apparently it is not just investors who are concerned by political instability in Egypt. This morning, rating company Midroog Ltd. cut its rating on Ampal's three series of bonds one level, from A3 to Baa1-. The move came a month after the debt was put on Midroog's watch list.

Midroog points out that at this time, the consequences of the uncertainty in Egypt on the value of Ampal's assets or its financial stability cannot be estimated.

Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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