|* Asterisks denote mandatory information|
|Name of Announcer *||THE ISRAEL ELECTRIC CORPORATION LTD.|
|Company Registration No.||520000472|
|Announcement submitted on behalf of||THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS|
|Announcement is submitted with respect to *||THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS|
|Announcement is submitted by *||Shai Elmalech|
|Date & Time of Broacast||01-Jul-2012 20:02:49|
|>> Announcement Details|
|The details of the announcement start here ...|
|Announcement Title *||Immediate report|
|Description||Following the immediate report dated 5 April, 2012, a notification is hereby given by The Israel Electric Corporation Ltd. (the "Company") that on 29 June, 2012 the international rating agency Standard & Poor's (the "Rating Agency") announced that the Company's rating remains on CreditWatch negative due to the timing and|
magnitude of the company's funding requirements as early as July 2012 and due to the fact that the Israeli government has affirmed its commitment to secure funding for the additional fuel costs, but it has only guaranteed NIS 4.5 billion of new debt.
The Rating Agency mentioned that the ongoing CreditWatch placement reflects the possibility of downgrading the Company if it assess that the Company has not implemented appropriate liquidity measures in a full or timely manner.
The Rating Agency aim to resolve the CreditWatch placement within the next two weeks. During this period, the Rating Agency will monitor whether the Company completes the NIS 3 billion, government-guaranteed bond issue, and will also assess how the government and the Company intend to fund any additional liquidity shortfall that may arise in the rest of 2012.
The Rating Agency further mentioned that it could affirm the rating and remove it from CreditWatch if the Company will complete the planned NIS 3 billion bond issuance in July and if, at the same time, there will be a clear visibility on how any amount needed over and above this guaranteed bond will be sourced.