Maalot cited Elbit Imaging's non-payment of the principal and interest payments on its Series A and B bonds yesterday as the main reason for the downgrade.
Standard & Poor's Maalot Ltd. has downgraded all the bonds of Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT), controlled by CEO Mordechay Zisser, to a D rating, with a "Negative" outlook. The downgrade applies to all eight Elbit Imaging bonds traded on the TASE.
Maalot cited Elbit Imaging's non-payment of the principal and interest payments on its Series A and B bonds yesterday as the main reason for the downgrade. A D rating means that a company has failed to meet the financial commitments on its bonds on time, and that Maalot believes that the company is at risk of general insolvency and unable to meet any or all of its material liabilities. "We believe that the company will not pay its debts on other financial commitments on time, in view of the complexity of the negotiations for a debt settlement with the creditors on one hand, and in view of the company's current liquidity situation and concerns about preferential creditors on the other," said Maalot.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2013
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