S&P: No change in Israel’s credit rating anytime soon

Standard & Poor’s Barbara Ridpath: The domestic economy still faces fiscal problems.

Standard & Poor’s has no plans to change Israel’s long-term credit rating in its upcoming revisions in January 2006, implied S&P's managing director and chief credit officer Europe Barbara Ridpath. She is visiting Israel in advance of S&P and Maalot The Israel Rating Company Ltd.’s joint conference tomorrow in Tel Aviv. Standard & Poor's chief marketing officer Europe Guy Hewitt and Standard & Poor's European structured finance group director Jose Ramon Torawill also participate.

Ridpath said S&P would probably keep Israel’s credit rating at A-, and its outlook at “Stable”. She said the domestic economy still faced fiscal problems, and on the basis of present figures, Israel’s credit rating should not be upgraded.

All three leading international credit rating companies S&P, Moody’s and Fitch Ratings give Israel the same A- rating and “Stable” outlook. Some Israeli economists had earlier thought that the rating companies might upgrade Israel’s credit rating, but the current market consensus that the credit rating will not be changed, because Israel is entering an election year.

S&P is a strategic partner in Maalot, which rates Israeli companies. In general, it can be said that S&P executives, led by Ridpath, who are now visiting Israel are optimistic about Israel’s economy. They are commenting favorably about structural reforms and positive economic processes now underway.

During their visit, S&P executives will meet Israeli economic leaders and chair the joint conference with Maalot. The conference will cover global credit trends, companies’ rising leverage, the repercussions of hedge funds’ liquidity, global experiences with bond redemptions in cases of defaults, and the ramifications of risk pricing and securitization and future flows.

Published by Globes [online], Israel business news - www.globes.co.il - on October 31, 2005

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