Moody's Investors Service and Midroog Ltd. announced today the opening of the new Israeli rating agency, Midroog. Moody's entered an affiliation agreement with Midroog and holds a minority equity interest in the new agency.
Midroog will provide domestic ratings and research services on all bond types and for a variety of issuers including banks, local authorities, real estate firms, industrial companies, utilities, holding and investment companies and projects within the state of Israel. Moody's will provide professional support on rating methodology and analyst training, based on its globally recognised credit analysis techniques for companies, municipal governments and structured finance securities. Separately, Moody's will continue to provide globally comparable ratings for domestic as well as cross-border financings.
"The partnership with Midroog enhances Moody's ability to provide credit ratings and research services in Israel and to assist Israeli issuers seeking to access international capital markets," said Michael Foley, senior managing director of Moody's Investors Service. Foley manages Moody's ratings and research business in Europe, the Middle East and Africa.
"We believe that in providing a high quality service to investors, issuers and other market participants, Midroog will bring a real difference to the Israeli capital market and contribute to its advancement," said Jacob Laskow, who will serve as chairman of Midroog. "The use of credit ratings will increase as an essential tool in making rational investment decisions".
Laskow estimated that the credit ratings sector will grow in the next few years, due to regulatory and other changes in the capital market and that Midroog will serve this trend as a leading player in the rating field.
Midroog's CEO is Gil Gazit. The founders and key shareholders are Joseph Singer, Dr. Eli Kraizberg and Yechiel Even and Ron Weissberg. The other investors in Midroog are Mivtachim Social Insurance Corporation Ltd., Union Investments and Enterprises (UIE) Ltd., a wholly owned subsidiary of Union Bank Israel, Fraiman A. Holdings Ltd., DS Securities and Investments Ltd and Yoav Harlap. Midroog has been approved by the Israeli Ministry of Finance.
Published by Globes [online] - www.globes.co.il - on December 9, 2003